Euro vs US Dollar Technical Analysis
The Euro has fallen a bit during the early hours on Monday, but quite frankly it is relatively quiet trading. In fact, it is an area that we need to pay close attention to due to the fact that it not only has a lot of psychology attached to it, but the 1.05 level is an area that was previously important. Beyond that, we also need to pay close attention to the fact that we are oversold. An oversold condition quite often will cause a bit of a bounce.
Nonetheless, the 1.08 level above is significant resistance, and therefore I think we would need to see a lot of effort to break above that area. If we did, then I might have to look at this market in a different light, but with the 50 Day EMA breaking down to that area, it is very likely that we will continue to see a lot of downward pressure. Breaking above there could open up the possibility of a move to the 1.0933 level, which has been resistant multiple times over the last couple of weeks.
Breaking down below the lows of the last couple of days could open up a move to the 1.03 level, but that will be a tough move unless of course some type of fundamental reason comes in and spooks the market. Ultimately, fading rallies will continue to be the best way going forward, and therefore I will be looking at signs of exhaustion to get involved as the US dollar continues to be by far the best-performing currency.
EUR/USD Price Forecast Video 03.05.22
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This article was originally posted on FX Empire
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