EUR/USD Forecast – Euro Continues to Move on Rates

Euro vs US Dollar Technical Analysis

The euro has skyrocketed during the early hours on Thursday, as the CPI numbers in the United States came out lower than anticipated. This has people betting that the Federal Reserve might cut rates. And of course, that could get people excited about the idea of taking risks. Whether or not the Federal Reserve is close to cutting rates remains to be seen, but we are starting to see more and more people on Wall Street push that narrative. And therefore, I think it makes a certain amount of sense that we have seen this market slam directly into the 1.09 level.

The question now is whether or not we can close above this on a daily chart. The four hour chart certainly looks bullish, but it also shows just how important the 1.09 level is. If we can break above the 1.09 level, then we could go looking to the 1.10 level above. A short term pullback at this point in time certainly makes sense as well. We’ll just have to wait and see. Underneath we have the 1.08 level underneath as a major support level.

In general, this is a market that I think continues to see a lot of volatility. And when you zoom out on the longer term charts, it does make a certain amount of sense that we just go from one large, round, psychologically important figure to another so that your guidelines, you just look at this as a grid pattern. And with this I think you have a scenario where this is all going to come down to interest rates in America.

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