EUR/USD Forecast – Euro Continues to Threaten the 1.12 Level

Euro vs US Dollar Technical Analysis

The Euro continues to face significant resistance near the 1.12 level, an area that I think a lot of people will be watching very closely as it has been such an obvious barrier. As we go through the Wednesday session, there isn’t much out there from an economic announcement standpoint to move the market, so it’ll be interesting to see how this plays out. We are a little bit overstretched at this point in time, but nonetheless, the one thing that you need to keep an eye on is the fact that dips do continue to get bought into, and I think also it’s worth paying close attention to the large round psychologically significant figures as they tend to offer both support and resistance in this market.

In other words, if we pull back significantly, the 1.11 level is probably your next major support level. I do think at this point in time, the market is going to continue to see a lot of choppiness, but it is still, for the most part, sideways choppy action. Although a move decidedly to the upside could really get traders jumping all over the Euro and dumping the US dollar everywhere. Remember, this is probably the biggest measure of US dollar strength or weakness overall. And as you look at a two-year chart, we are at a major barrier that people need to keep an eye on what happens next because if we do break out significantly, we could be looking at a move to the 1.15 level.

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