EUR/USD Forecast – Euro Attempting to Turn Things Around

Euro vs US Dollar Technical Analysis

We are testing the 200-day EMA early on Tuesday as it looks like we are trying to go a little bit higher to reach the 50-day EMA. At that point, we could be looking at the 1.09 level, which is an area of significant selling pressure.

All things being equal, this is a market that is bouncing from an extreme low. And now we’re going to have to sort out whether or not we are going to have to determine if this is a market that is going to stay in a range or is this just simply bouncing from an extreme oversold condition? I think at this point we are setting up some type of range this year and it looks like 1.07 might be an area of interest for buyers.

On the upside, we have multiple resistance barriers that could come into play, but for me, the biggest one, of course, would be the 1.10 level because it’s an options area. It’s a large round number and it’s an area that’s already proven itself, so we will have to wait and see. Expect choppy behavior because both of these central banks will be cutting this year, and that, of course, makes both currencies a little bit soft.

If we were to turn around and break down below the 1.07 level, that would suggest that there’s more of a risk off move and the US dollar would probably pick up against most things. It wouldn’t be just the Euro at that point. So, with that being the case, I think this is a worthy currency pair to watch as an indicator, or if you plan on being more or less a swing trader, but you’re going to have to be very patient. Remember, typically the Euro doesn’t move very quickly, and I think this year is almost certainly going to set up to be like that. As things stand right now, I think we have a little bit of momentum building up, but the distance that we will travel probably won’t be anything that will astonish most traders.

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