EUR/USD Forecast – Euro Continues to See a Grind

Euro vs US Dollar Technical Analysis

The early hours on Tuesday have seen a little bit of a pullback, only to turn around and show signs of strength again. Ultimately, the 200-day EMA continues to be a little bit of a barrier, but I think the true struggle is the 1.08 level itself.

If we can clear this, it opens up another 75 points to the upside so that we could go looking towards the 1.0875 level. Underneath, we have plenty of support that extends all the way down to the 1.07 level, which is a large round psychologically significant figure. All things being considered, I do think this is a market that is going to struggle to go a lot higher and will more likely than not remain somewhat choppy. After all, you have to keep in mind that both of these central banks are likely to cut rates this year and the ECB is likely to do it quicker than the Federal Reserve.

So, there is still that bit of an overhang. We recently broke down below the 1.07 level for a little bit of a throwover as it were, but it looks like we’re basically going to stay in the overall consolidation area between 1.07 and 1.10 for most of the year. I think you do have to keep in mind that there are a certain amount of geopolitical concerns out there as well, so that does favor the US dollar. So even if we do rally from here, I think that the momentum is probably lacking and the amount that we could rally is probably somewhat limited.

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