EUR/USD Forecast – Euro Attempts to Break Resistance

Euro vs US Dollar Technical Analysis

The euro has broken higher during the course of the week, and as I record the video, it looks like we are doing everything we can to break above the 1.09 level. Whether or not that sticks remains to be seen, but it is worth noting that there are a lot of questions about what the Federal Reserve is going to do next. I suspect that there will be a narrative that they are going to cut later this year because Wall Street needs that to be the case. It doesn’t really matter if it’s true or not.

So that will put some downward pressure on the US dollar. But at the same time, you have the ECB cutting rates. When you zoom out on the chart, you can see that there is a proclivity to balance around from one large round figure to another. So, if we do break out to the upside, I would assume we’ll try to get to the 1.10 level.

A pullback from here could open up and move down to the 1.0850 level, and then again at the 1.208 level, we could see buyers. I think this continues to be a lot of noise just waiting to happen. But when you look at it from a longer term standpoint, you can see that this pair, despite the fact that it’s been very bullish over the last couple of weeks, is still very rangebound from the longer term perspective.

So, you do need to keep that in mind. Ultimately, I think you’re going to see a lot of choppy and noisy behavior, but it looks like the world, at least at the moment, is still favoring the euro. Because of this you simply cannot try to short this pair easily, as the market has been so heavily driven by momentum as of late.

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