EUR/USD Forecast – Euro Continues to Look For Support

Euro vs US Dollar Technical Analysis

The Euro did very little in the early hours on Wednesday as we continue to just hang around the 1.1075 level. This is the market that recently plunged, so it does make a certain amount of sense that the market is at least trying to go sideways a little bit in order to find the floor. Even if we break down from here, I suspect that the 1.10 level underneath will also be supported. So, we should pay close attention to that. In general, I think this is a market that is probably going to remain very neutral and range-bound in the near term, perhaps even in the long term.

The CPI numbers in the European Union came out at 1.8% year over year instead of the targeted 2%, suggesting that the Europeans won’t be tightening monetary policy anytime soon, and that’s part of what we’ve seen. Furthermore, we also have the questions of global security and global growth situation where perhaps traders are starting to wonder whether or not running back to the safety of the US dollar may make some sense.

Either way, I think we just go from one big figure to the next, which is pretty much what we’ve been doing for some time now. This is a situation where I think we are just going to see more of the same, and this is a market that will continue to be short-term focused.

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