Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during the trading session on Tuesday but continues to see downward pressure as we have broken below the 1.07 level. At this point, the Euro continues to be a bit soft, and I think that will continue to be the way this plays out. Any rally at this point in time should be thought of as a selling opportunity, especially with the 1.08 level above offering such a resistance level that people will pay close attention to.
The market could very well drop to the 1.05 level, which is a large, round, psychologically important level, and an area that will attract a lot of attention. I think at this point in time it is very likely that we will continue to see sellers on short-term rallies, but keep in mind that this pair very likely will be choppy on the way down, just as it is choppy under most conditions. It is not until we break above the 1.0933 level that I would be impressed with any rally, and therefore I would be looking for signs of exhaustion to take advantage of if I get the opportunity.
Keep in mind that the interest rate differential between the United States and Europe continues to favor the greenback and will almost certainly be that way for the foreseeable future. Whether or not we get a complete change in attitude is a completely different question and not something that I expect to see anytime soon. In fact, it is probably not until we see the Federal Reserve change its attitude that this market could turn around for any significant amount of time.
EUR/USD Price Forecast Video 27.04.22
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This article was originally posted on FX Empire
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