EUR/USD Forecast – Euro Continues to Look for Its Next Reason to Move

Euro vs US Dollar Technical Analysis

The Euro has gone sideways over the last couple of days, and therefore it’s likely that we will continue to see a lot of questions asked about whether or not we can continue to go higher. At this point, I think a lot of those who got involved, are probably happy to take a bit of profit.

If you look at longer term charts, the market continues to see this area as significant resistance. So, now that we are at the top of the range, there are some barriers to consider. I mean, quite frankly, the bullish traders out there have had a nice run. I suppose a certain number of people will be out there willing to pick up a little bit of profit.

If we were to break down below the 1.11 level, then it’s likely that the market could drop to the 1.10 level. The 1.10 level, of course, is a large round psychologically significant figure, and of course an area where a lot of people will be paying attention to. On the other hand, if we turn around and break above the 1.1160 level, then I think the euro is likely to go looking to the 1.1250 level above.

In that environment, it would almost certainly be a situation where the US dollar is getting hammered against everything. It won’t necessarily be a situation where it’s all about the euro. This is a market that is stretched though, so it wouldn’t take much for Jerome Powell to get traders looking to take profit.

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