EUR/USD Forecast – Euro Continues to See Momentum

Euro vs US Dollar Technical Analysis

The Euro has shot straight up in the air in the early hours on Wednesday as we have broken cleanly above the 1.09 level. At this point, we could see the Euro go looking to the 1.10 level, but keep in mind that this is a very choppy pair. It is bullish, and therefore you have to assume that’s the direction it’s going, but if it were to drop below the 1.0875 level, then you would have to be concerned again. All things being equal, this is a market that I think continues to see a lot of volatile moves, but in short timeframes.

This is a market that is simply going from one major round figure to another, and at this point, I think you have to look at it through the prism of just simply trying to determine whether or not the US dollar is going to strengthen or weaken. Clearly, it looks like the greenback has been weakening early in the session, which is interesting considering that the inflation situation in the United States is still pretty hot and as long as that’s the case, it’s likely that we will continue to see some hesitation, at least on the part of the Federal Reserve.

They are certainly going to have to take a look at inflation, but potentially weakening job markets in the Latin Americans. It’s really an untenable position the Federal Reserve finds itself in, which means the rest of the world finds itself in that very same position before it’s all said and done. In the short term though, it certainly looks like the Euro is on the right side of the trade.

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