EUR/USD Forecast – Euro Continues to Look For Momentum

Euro vs US Dollar Technical Analysis

Early on the Wednesday session, we have seen a little bit of Euro strength, but quite frankly, not enough to be convinced of a significant breakout. Ultimately, the market is struggling with the 1.0850 region, which is basically where we sold off from previously.

If we can break above all of the noise just above current trading, then it’s possible that we could go to the 1.10 level, but we will need a weaker than anticipated CPI number coming out of the United States. Even if we do get that, it’ll be interesting to see how this all plays out because there are still concerns that the Federal Reserve is going to stay tighter for longer.

Recently, we’ve seen Wall Street try to convince itself that the Fed’s going to have to cut rates, but this is a game that we’ve seen multiple times over the last, at least year, and therefore, you can only read so much into it at this point. The market breaking down from here will have to deal with the 200-day EMA and the 50-day EMA as support with a target of 1.07.

Longer term, most of this year is probably trading in between 1.07 and 1.10, so we’re right around in the middle of where I anticipate we spend most of our time this year anyway, thereby making it more or less a neutral pair. However, it is useful to determine where the US dollar may go against other currencies, as it is the biggest component of the US Dollar Index. Because of this, I watch this pair daily, even if it doesn’t offer a lot of opportunities.

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