EUR/USD Forecast – Euro Pulls Back From Major Level

Euro vs US Dollar Technical Analysis

The Euro initially tried to rally to the 1.11 level before turning around and showing signs of negativity and a bit of a pullback as it looks like we continue to go from one large figure to another without making any real major moves. And I think that might be the case going forward because quite frankly, the ECB cutting rates and now coming the Federal Reserve will be, you don’t really see much of a difference in the attitude of markets.

Now, it is worth noting that the ECB suggested that they are still worried about inflation, but quite frankly, the Federal Reserve should be as well as inflationary numbers continue to come out hotter than anticipated.

So, I think we will just have basically a sideways market in the longer term, but we are at the top of the range. So, I still think there’s probably a little bit of resistance above, especially once you get closer to the 1.12 level. If we were to break down below the 1.10 level, that opens up the move down to the 1.09 level, and I do think that’s how we behave in this market. We just go back and forth from one of these large figures to the next. The pullback in the early part of the session on Friday does suggest that we are running out of momentum, but really at this point in time, that doesn’t necessarily mean we fall apart either.

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