EUR/USD Forecast – Euro Continues Pullback

Euro vs US Dollar Technical Analysis

The Euro has fallen to kick off the week on Monday, breaking below the 1.03 level, and threatening the 1.02 level. This is a pullback from a major technical indicator, the 200-Day EMA. Because of this, longer-term traders will continue to look at this as a potential continuation of the longer-term trend. Ultimately, this is a look at the European Union and all of its problems, but at the same time features people looking at the potential downtrend continuing.

After all, the United States dollar is considered to be a safety trade, and therefore if people are concerned about the global markets, it does make a lot of sense that we would see the US dollar pickup strength.

This is especially true against the Euro, as we have seen the energy concerns for that part of the world only get worse, with it being only one serious cold snap from major issues. This of course is not a good sign for the currency, as there will be a lot of concern when it comes to global trade. If that’s going to continue to be the case, then it makes a lot of sense that the Euro could go down to the 50-Day EMA, down near the parity level.

Ultimately, this is a market that I think will continue to see a lot of noise, but at the end of the day I think we may at the very least need to pullback in order to find a bit of value in a market that was overbought. At the very least, a pullback is probably necessary, but when you look at the longer-term chart, we are still technically in a downtrend.

EUR/USD Forecast Video for 22.11.22

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