EUR/USD Forecast – Euro Tests Major Resistance Area

Euro vs US Dollar Technical Analysis

The Euro did rally a little bit in the early hours on Monday but has since pulled back a bit from the highs again. Because of this, it does make a certain amount of sense that we will continue to see a lot of back and forth at this high because quite frankly, it does not look like we have the momentum to just rip through it. That being said, each successive low continues to go higher, so it at least suggests that we are more likely than not going to be continuing higher eventually.

How the dollar fares against other currencies typically will show you how it’s going to go here and vice versa as this is the most liquid currency pair in the world. That being said, the fact that we just can’t seem to stick above 1.12 yet does suggest that this is going to be a major fight, perhaps between here and 1.1250, and if you look at the longer term charts it certainly suggests that could be the case as well.

Because of this, I think you are looking to buy dips, but only if you’re a short-term trader. Quite frankly, there’s so much going on at the moment that I don’t really think you want to go into this market with a ton of money. I just don’t think it has enough momentum at this point. If we were to break down below the 1.11 level, then perhaps we have a deeper correction, but until then, I think it still favors the upside however so slowly.

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