EUR/USD Forecast – Euro Continues to See Attempt at Recovery

Euro vs US Dollar Technical Analysis

You can see that the Euro rallied early during the trading session here on Thursday, but the 1.07 level will be an area that a lot of people are going to have to pay close attention to. With that being said, the market is likely to continue to see a lot of volatility in this area and I think we have a situation where if we were to break above the 1.07 level then we could go looking toward the moving averages above. The market certainly has a lot of market memory in this area, and I think we could pull back from there.

The 1.06 level underneath could be a potential support level, but if we were to break down below there, then I think you have a real shot of going to the 1.05 level. Keep in mind a lot of what we are seeing is a reaction to the bond markets in America and rising rates but at the same time the ECB has already admitted they’ll be cutting in the next few months, while the Federal Reserve is at least pretending like they won’t cut anytime soon, but they’ve been so flaky.

This is why you get lots of choppiness when central banks have no idea what they’re doing, which is very obviously becoming the case. 1.07 is going to make a huge difference one way or another, so pay attention to this area. If we break above it, then we probably go looking to that 50-day EMA sitting right around 1.08. If we pull back from here, then 1.06 will be targeted, followed by 1.05.

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