Euro vs US Dollar Technical Analysis
The Euro has gone back and forth during Tuesday again, just as we have seen multiple days in a row. Keep in mind that the CPI numbers are coming out of America on Wednesday, so it could be quiet for 24 hours. However, once we get that number it could give us a bit of a catalyst to get moving. The inflationary concerns and the United States have been one of the main catalysts of the US dollar rising, as the Federal Reserve is going to be very aggressive with its tightening schedule.
The 1.06 level above is significant resistance, but if we do break above there it is not reason enough to get long of the Euro. The 1.08 level above is where I would start to look for selling again, right along with the 50 Day EMA. On the other hand, if we were to break down below the lows of the last week or so, we could see this market fall and reach the 1.03 level over the next several weeks. That being said, we are sitting right on top of major support on longer-term charts, so that is something that you need a catalyst to breakthrough.
Regardless, even if the Euro were to suddenly try to change its trend, you will have plenty of time to get involved, so there is no need to rush into the trade. Be cautious, and do not fight the overall trend. The market continues to favor the US dollar against almost everything and could even be forming a bearish flag at the moment.
EUR/USD Price Forecast Video 11.05.22
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This article was originally posted on FX Empire
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