EUR/USD Forecast – Euro Continues to See Pressures

Christopher Lewis
Published: Jun 14, 2024, 13:25 GMT+00:00

The euro fell a bit in the early hours of Friday, as the markets are reacting to the G7 countries out there threatening the Chinese banks that deal with the Russians. The idea that they are going to take Chinese bank out of their system has traders overreacting.

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Euro vs US Dollar Technical Analysis

The Euro has fallen again during the early hours on Friday as G7 members are now threatening Chinese banks who support Russian activities. At this point it’s going to get interesting because I suspect we are oversold and there will be a bit of a bounce. Looking around at several stock markets I could make that argument in some indices as well. But to pick a fight with China is very interesting considering that without China the last 10 years would have been absolutely dreadful for most firms in the European Union.

So if anything actually comes of this remains to be seen, I wouldn’t anticipate in the long run that this has any teeth, but there’s always the short term freak out that we get in the meantime. So I look at this as a potential buying opportunity, not necessarily that I’m particularly bullish on the Euro. I think we will go sideways for the rest of the year.

If we do break down from here, the 1.06 level is a major support level that a lot of people have been paying attention to in the past. So, I think that’s about as far as it goes, at least as things stand right now. It’ll also be interesting to see how things play out as we head into the weekend. But right now, I think this, for the most part, offers a little bit of value that a lot of people will be willing to take advantage of.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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