EUR/USD Forecast Today - 01/07: Euro Holds Support (Chart)

(MENAFN- Daily Forex)

• The euro has initially fell a bit during the trading session on Friday, to dip down below the 1.07 level yet again.
• This is an area that has been important more than once, so I think it makes a certain amount of sense that we pay close attention to what happens when we drop below there.
• During the Friday session, we have seen a lot of buyers step back into the market, and it suggests to me that we are not ready to truly break down. In other words, we unfortunately are still stuck in the same noisy sideways nonsense that we have been in for some time.

Technical Analysis

The technical analysis for this pair is somewhat messy, just like the pair itself. It's worth noting that the 1.07 level has been significant support, although it's not the“be all end all” of support. Because of this, the market is likely to continue to see a lot of noisy behavior in this general vicinity, but at this point in time it looks like we could turn around. If we do continue to rally, I suspect that there are several areas that we will be paying close attention to.

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The 50-Day EMA sits right around the 1.0775 level and is dropping. I think at this point, most traders will be looking at this for clues as to whether or not the target gets hit, or if it even holds as resistance. If it does hold as resistance, it will just continue to squeeze this market in very tight trading. After all, it is summer and that would not be a huge surprise. If we do rally from here, the 1.08 level is also an area that people will be paying close attention to as it is crucial time and time again.

On the other hand, if we break down below the 1.0650 level, it opens up a move down to the 1.06 level underneath. Quite frankly, this is a market that continues to see a lot of back and forth between every 100 point level, and that should continue to be the case for moral we have seen.

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