EUR/USD Price Forecast – The Euro Hovers Above 1.05

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the session on Wednesday as the 1.05 level has been an area of extreme interest. The market continues to look a bit confused and lost, and it is worth noting that the 1.04 level underneath has been a massive support. That’s an area that I think is worth paying attention to as it is a “double bottom”, and therefore I think it’s an area that will be worth paying close attention to. This is because if we were to break down below there, it’s likely that the market could go to the 1.02 level, possibly even parity.

Alternately, if we were to break above the 50-Day EMA, this could be a short-term bullish sign. At that point, the 1.08 level could be crucial, as it has shown itself to be so resistive in the past. I do believe that the downtrend should continue because quite frankly the Federal Reserve tightening monetary policy in relation to the ECB should continue to push this market lower. Ultimately, the European Central Bank is essentially stuck, because even though they are talking about doing a couple of 25 basis point rate hikes, it is but a pittance in comparison to the Americans.

Furthermore, this is a market that is going to measure risk, and therefore as long as people are so concerned about everything, the US dollar should continue to do quite well. Ultimately, this is a market that I think continues offer opportunities every time it rallies to start selling and picking up “cheap US dollars.”

EUR/USD Price Forecast Video 30.06.22

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This article was originally posted on FX Empire

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