EUR/USD Forecast – Euro Continues to Trade in a Range

Euro vs US Dollar Technical Analysis

The Euro has essentially done nothing over the last couple of days as we continue to bounce around the 1.09 level. The 1.09 level is an area that a lot of people have paid close attention to recently as it has the effect of not only being a large round psychologically significant figure, but it’s also an area that we have bounced around back and forth. And the market does seem to look at these big figures as targets.

For example, if we do rally from here and break above the 1.0950 level, it’s likely we go looking to the 1.10 level. On the other hand, if we break down below the 1.0880 level, then it’s likely that we go down to the 1.08 level. This is a market that has been extraordinarily choppy, and it does make a certain amount of sense that we are lost because people are still trying to measure whether or not we are in a risk on or risk off type of environment.

Furthermore, people are not overly convinced of what the Federal Reserve is going to do, so that throws half of the equation into chaos. At this point in time, I think you’re going to continue to see a lot of back and forth action pinging back and forth from one large figure to another. That’s been the case for the last two years. I don’t think it will change in the next few days.

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