Euro vs US Dollar Technical Analysis
The Euro initially tried to rally a bit during the trading session on Thursday but gave back gains rather rapidly to show signs of weakness yet again. That being said, the market looks as if we are going to continue to struggle as the European Union has a whole fistful of problems.
The market has melted down recently, as Europeans have to worry about things like power, and of course the Americans don’t. Furthermore, the interest rates in America continue to climb, and that does make this a bit of a “one-way trade.” That being said, we are a bit overdone so do not be surprised if we make another attempt to rally, but any rally at this point in time should be an opportunity to short a market that is in a massive downtrend.
At this point, if we break down below the low of the Wednesday candlestick, the market should go down to the 1.01 level, perhaps even down to the parity level. I do believe that parity will eventually be had, sometime during the summertime. That being said, the market may take some time to get down there, but ultimately I think this is a situation where you have to be cautious, but recognize that there is the opportunity to benefit from a further deterioration of the overall situation in the European Union.
When you look at long-term charts, if we go down below the parity level, the next major support level on the monthly timeframe is 0.85, which would be an absolute disaster. I’m not calling for that yet, but keep in mind that he is a possibility. At this point, I look at the 1.06 level as the “ceiling in the market.”
EUR/USD Price Forecast Video 08.07.22
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This article was originally posted on FX Empire
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