Euro vs US Dollar Weekly Technical Analysis
The Euro rallied rather significantly during the course of the trading week to break well above the 1.07 level. There is a significant amount of resistance built into the 1.08 level, where we had seen support previously. “Market memory” should come into the picture and offer a bit of resistance. We are in a massive downtrend, and quite frankly there’s no reason to think that is going to change.
When you look at the start, you can see just how important the 1.08 level has been, but you can also see that there should be a balance due to the stretched trajectory that we had been in. I think given enough time, we probably go much lower, but you will need to look for signs of exhaustion. I suggest that you probably need to go to shorter time frames to take advantage of signs of selling pressure. You may need to go down to the daily chart, or perhaps even the four-hour chart.
On the downside, the 1.05 level will be an area where people that are bullish will be looking to step in, and there could be a bit of profit-taking in the general vicinity as well. Because of this, anticipate that we will continue to see a lot of choppy behavior, but that will be nothing new for the Euro as it tends to be one of the choppier Forex pairs
If we were to break above the 1.09 level, then we may have more of a recovery built into the market, but that more likely than not would take some type of fundamental reason to change. The Federal Reserve is not ready to back down, but the bond market may price that in.
EUR/USD Price Forecast Video 30.05.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
