Euro vs US Dollar Technical Analysis
The Euro has found enough support near the 1.05 level to show signs of life again, despite the fact that CPI numbers have come out hotter than anticipated in America. That being said, this is a market that I think more or less is comfortable in this area, and we are trying to determine whether or not this is going to be a basing pattern, or if it is the market taking a bit of a breather before tears things back down. Ultimately, this is a currency that I do not want to own because the European Union has a lot of problems to deal with at the moment. Furthermore, the bond market futures suggest that they are not going to be tightening very aggressively, as opposed to the United States.
Rallies at this point will be selling opportunities that I plan on taking advantage of, with the 1.08 level above being the “ceiling in the market” from what I can see. The 50 Day EMA sits right there as well and is crossing over that line, so I think there is plenty of fight to be had up there.
On the downside, if we were to break down below the lows over the last couple of weeks, we could go to the 1.03 level, but it is worth noting that this is an area that has been very noisy historically, so be interesting to see whether or not that remains the case. As things stand right now, I simply look for short-term rallies to sell for small gains.
EUR/USD Price Forecast Video 12.05.22
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This article was originally posted on FX Empire
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