EUR/USD Forecast – Euro Continues to See Sideways Action

Euro vs US Dollar Technical Analysis

The euro has rallied a bit during the early hours on Wednesday, as we continue to see a lot of noisy behavior. The 1.08 level underneath is a significant round figure that a lot of people will watch as the market is going to continue, at least in my estimation, to go bang from one big figure to another. The 1.08 level is an area that’s been important multiple times in the past, so it does make a lot of sense that we would continue to see it show important.

A rally from here could open up a move to the 1.09 level, also an area that we have seen a lot of noisy behavior and resistance. So, I would anticipate that would be difficult to get beyond. On the other hand, if we could break down below the 1.08 level, it’s worth noting that the 1.07 underneath would be a significant support level.

And of course, at this point in time, it just simply looks like we are going to go back and forth between these levels. Keep in mind that Thursday and Friday keep traders on their toes with the Consumer Price Index and the Producers Price Index numbers coming out. And I think between now and then, we’re just killing time waiting to see what that information in the United States may be like.

After all, this is all about whether or not the Federal Reserve is going to possibly cut rates and whether or not they are starting to see inflation drop. So, expect a lot of nothing. And then perhaps a run to one of those two big figures burned. Overall, the euro continues to be very choppy.

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