Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during the trading session on Thursday but then gave back resistance near the 1.06 level. Ultimately, this is a market that I think will continue to look at the 1.05 level as a magnet for price. It will be interesting to see whether or not we can break down through that level, because if we do then it is likely that we go much lower. All things being equal, I think we do break down below there, perhaps reaching down to the 1.02 handle.
Rallies at this point will continue to be selling opportunities from everything that I see. The 1.08 level above should be a significant resistance barrier, as the 50 Day EMA sits just above there, and we are dropping in that indicator as well. Furthermore, it is an area that previously had been supported, so one would also anticipate a bit of resistance in that area.
Either way, the US dollar is still stronger than all other currencies that I am looking at, and the Euro will be no different. After all, the European Central Bank has no real possibility of tightening anytime soon, while the European economy is so bearish, and of course, the market will continue to see a reason to short this currency going forward. The US dollar also has the backing of the Jerome Powell cementing the 50 basis point rate hike coming at the next meeting, and perhaps even the one after it. Either way, we are in a downtrend, and you should not be fighting that anyway. At this point, I do not have any interest in buying under any foreseeable circumstance.
EUR/USD Price Forecast Video 06.05.22
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This article was originally posted on FX Empire
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