- I recognize that the EUR/USD currency pair is reaching a significant resistance barrier that we could have a lot of trouble to get above.
- All things being equal, this is a market that I think has a lot of noise attached to it, which is typical behavior for this pair.
- After all, if you look at the EUR/USD pair over the last 2 years, we have been chopping back and forth and essentially got this market to go nowhere.
Technical Analysis
The technical analysis for the EUR/USD pair is about as flat as it gets, because quite frankly even though we have broken above the 200-Day EMA, as well as the 50-Day EMA indicator, it’s worth noting that both of those indicators are flat. We did break above the 1.08 level, and that of course is a large, round, psychologically significant figure that a lot of people will be looking at. However, I don’t necessarily think that it’s a major influence, and if we can continue to go higher, we may find something a little bit more significant in the form of the 1.09 level is concerned, as it had previously been resistance.
Top Regulated Brokers
On the other hand, if we were to break down below the moving averages, then it opens up the possibility of a move down to the 1.07 level. The 1.07 level has offered significant support multiple times, and therefore I think you have got a situation where it probably carries quite a bit more weight than the 1.08 level also.
Keep in mind that the currency pair has to look at the pair through the prism of 2 central bank that simply have nowhere to be or nothing to do. The ECB has of course offered an interest rate cut recently, but now people are wondering whether or not the Federal Reserve will continue to do the same going forward. I think at this point in time, you have a lot of nonsensical noisy and choppy behavior ahead.
Ready to trade our Forex daily analysis and predictions? Here are the best European brokers to choose from.