Euro vs US Dollar Technical Analysis
The Euro has fallen during most of the early hours on Tuesday as we continue to see a lot of noisy behavior. All things being equal, this is a market that I think will continue to pay attention to each and every large round psychologically significant figure. So, as you can see, we initially tested the 1.10 level above, and now, as I record this video heading into the New York session, we’re testing the 1.09 level.
I think this is indicative of what we are going to see in the euro going forward. When you look at longer-term charts, you can see that the 1.10 level has been a major resistance barrier. But when you also look at the longer-term charts, you can see just how the euro goes from one major round figure to another. And we have been going essentially sideways for a couple of years.
With this being the case, I think it is likely that this remains a very neutral trading pair. If you were a short-term trader, then you can use each large round figure for a guidepost. And that tells you that if you were to break significantly below the 1.09 level, then your target would be 1.08. On the other hand, if we were to bounce, the 1.10 level above might be a target as well. As far as a big move is concerned in this market, I just don’t know if and when we’re going to get it.
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