- During trading on Friday, we have seen the euro rise a bit against the US dollar to challenge the 1.09 level.
- The 1.09 level is an area that’s been important multiple times in the past, especially over the last couple of days.
- We have not been able to break above there cleanly, but at this point in time I think we are doing everything it can to at least attempt to do so.
If we were to break above the 1.09 level, then I think the 1.10 level is your next target. It’s also worth noting that the 1.09 level is one that’s important, so I think it will continue to be noisy. On any pullback, I would anticipate that the 1.08 level should offer a certain amount of support, as it had been important previously. Nonetheless, I do think that the Euro is at the very least likely to go sideways as it got too far in too short of a time span. After all, markets cannot go in one direction forever, and that is something that you need to be very cognizant of.
Top Forex Brokers
Technical Analysis
The technical analysis favors the Euro at the moment, although I think that you have to be cognizant of the fact that the technical analysis isn’t the only thing to be paying attention to. After all, bond yields in Germany have been skyrocketing, due to the fact that the German government is going to start burning through money and therefore borrowing quite a bit in the bond market. While this can give a little bit of a boost to the euro in the short term, longer-term I would suspect that it could cause major economic problems.
That being said, it’s also worth noting that the US economy appears to be slowing down just a bit, but this is expected to be a temporary blip on the radar, and if that is in fact going to be the case, the US dollar should come roaring back in a few months. In the short term though, it certainly looks like it’s more or less a “buy on the dips” type of market.
Ready to trade our daily Forex analysis? We’ve made a list of the best forex trading platforms for beginners worth trading with.