EUR/USD Forecast – Euro Continues to Look For The Floor

Euro vs US Dollar Technical Analysis

The Euro has simply sought some type of bottom and at this point in time, the 1.10 level underneath, I think, is an area that you need to pay close attention to as it continues to be an area that I watch due to its previous support and resistance area.

With all of this being said, I think you have a situation where traders will look for some type of reason to get long because the market does tend to go from one big figure to the next, and that certainly has been the case for some time now. When you zoom out on the charts, you can see clearly that the market has been paying attention to big figures, and really, it’s every single big figure, so 1.10 would give way and then the market more likely than not will find some support at 1.09 and so on.

If we can bounce from 1.10 then I think it gives the market the opportunity to get back to the 1.11 level followed by 1.12. Keep in mind that the latest plunge was essentially due to CPI numbers in the European Union coming in at 1.8% year over year, and the ECB’s target of 2% suggests that perhaps there won’t be any more tightening coming out of Europe. That being said, the Federal Reserve is likely to cut rates again this year, so I think you will continue to see a lot of push-pull action, and I don’t know that this recent action has changed much.

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