Euro vs US Dollar Technical Analysis
The Euro has rallied a bit during the trading session on Monday, reaching toward the 1.08 level, an area that has been important multiple times. At this point, I would anticipate that the seller should return, despite the fact that Christine Lagarde has suggested that there will be several 25 basis point rate hikes coming. At this point, the market is starting to test central banks, as it seems like most players do not believe that massive tightening is possible.
Despite this, it should also be noted that the European Central Bank is still much less hawkish than multiple other central banks around the world, including the Federal Reserve. Because of this, and a simple “risk-off” type of mentality around the world, it should continue to favor the downside. We are hanging around the 50 Day EMA, so that can cause some noise at times, but at the end of the day we are still very much in a downtrend.
Keep in mind that the Euro tends to be very sluggish under the best of conditions, so I’m not looking for some type of massive meltdown, just that the market should continue the overall malaise when it comes to the Euro. If you choose to buy the Euro, you will probably get more mileage buying it against a different currency. The US dollar is strong for multiple reasons and should remain so for quite some time. Quite frankly, this has just been a bit of a pullback in what has been an extraordinarily bullish run for the green bag. Until something fundamentally changes, I am still shorting this pair on signs of exhaustion.
EUR/USD Price Forecast Video 31.05.22
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This article was originally posted on FX Empire
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