Euro vs US Dollar Weekly Technical Analysis
The Euro has fallen rather hard during the week to reach the 1.05 level. This is an area that is a large, round, psychologically significant figure, so there was a little bit of profit-taking in that area. However, there is nothing on this chart that suggests that the attitude of the market is suddenly going to change. Because of this, I think we have got a scenario where we need to look for rallies that we can short, and that might mean looking to the daily chart.
The 1.08 level above should be a significant resistance barrier, based on market structure. I believe at this point we are more likely than not to see more of a “fade the rally” type of situation, as traders continue to pile into the US dollar. Keep in mind that the ECB is very dovish, while the Federal Reserve remains very hawkish. As long as that is going to be the case, it does make sense that we would see market participants favor the greenback.
Furthermore, there is a lot of fear out there, and that almost always favors the US dollar as well. In the current scenario that we are in, there is no reason to think that things are going to suddenly shift, and therefore I just do not see how the Euro does not eventually go looking to parody. If we were to turn around a break above the 1.08 level, there is still a lot of noise above there that could cause issues as well.
EUR/USD Price Forecast Video 02.05.22
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This article was originally posted on FX Empire
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