EUR/CHF, EUR/USD and EUR/GBP Forecasts – Euro in Focus on Monday

EUR/CHF Technical Analysis

The Euro has been very strong against the Swiss Franc for quite some time, but we are now approaching the 0.92 level, an area that I think will continue to be very important. As it was major support previously, it does make a certain amount of sense that maybe we just struggle a little bit with an overbought condition. That being said, this pair still favors the Euro over the Swiss Franc as the Swiss National Bank is keeping its rates at 0 and there is talk now that the ECB may actually have to raise rates.

Short-term pullbacks offer buying opportunities. I’d be especially interested near the 50-day EMA right around 0.9145. Keep in mind this pair pays you to be long of it, so if you are buying it, you should start to see a little bit of a padding to your account. If we can break above the 0.92 level, then I think we will probably go looking towards 0.9310.

EUR/USD Technical Analysis

The Euro against the US Dollar is a different story though. We have broken below the 1.15 level, and it looks like we are trying to get back to the 1.14 level. The Euro continues to be very sluggish against the Dollar, and the interest rate differential, of course, favors the US Dollar. Beyond that, there are concerns about energy in the European Union and with that being the case, I think it continues to put a bit of a drag on the European Union in comparison to the United States.

With that and the fact that we are technically underneath the 200-day EMA and seeing signs of a downtrend, I look at rallies as selling opportunities. I do believe that if we break down below the 1.14 level, we really could drop down to the 1.11 level.

EUR/GBP Technical Analysis

The Euro is very noisy against the British Pound, and I think there are a lot of things going on here. To begin with, we’re in the middle of a range. We’re right at the 50-day EMA as well as the 200-day EMA. I think you have a scenario where there’s a lot in the way of confluence here.

The interest rate differential between the two still favors the British Pound, but we also recognize that this is a market that is trying to sort out where to go next, as far as the energy crisis that could be coming is concerned. With this, I think we will remain range-bound, and if we do rally from here somewhere near 0.8750, I think you have a nice selling opportunity. The 0.86 level below continues to be a major floor; breaking below there, then I think the market falls apart.