Euro vs US Dollar Weekly Technical Analysis
The euro has initially fallen during the trading week to reach the 1.08 level. And now it looks as if we are trying to threaten the 1.09 level. But we’ll see whether or not we can break above there. If we can break above there, it could open up a bigger move towards the 1.10 level. Friday has seen the PCE numbers come in lower than anticipated, and that might put a little bit of downward pressure on the US dollar, but at the same time, you can make a strong argument for the ECB cutting. And if that’s going to be the case, I think you continue to see a lot of back and forth noisy behavior.
As a general rule, I look at the euro dollar as a gauge as to where the US dollar is going to go. All things being equal, this is a market that I think continues to see a lot of back and forth and therefore I’m not really convinced to put a lot of money to work at this point. Given enough time, I do think that we have a situation where we may be able to trade this like on the hourly chart. The weekly chart I think is going to be difficult, at least until we clear 1.10 and even then I think I would have to see a lot of momentum.
The 1.06 level underneath would be a major support level that would have to be broken to really send things lower. So, with that being the case, choppy sideways action I think will continue to be the way forward.
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This article was originally posted on FX Empire
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