EUR/USD Price Forecast – Euro Attempts to Bounce

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Tuesday as it appears we are trying to recover slightly. That being said, the market has been in a downtrend for quite some time, so at this point I think it’s only a matter of time before we see some type of exhaustion that we can start shorting. On the other hand, if we break down below the bottom of the candlestick, then it’s likely that we could go down to the 0.95 level, an area that previously had been supported as well.

The 50-Day EMA is walking along the downtrend line, making it even more resistance. Ultimately, this is a situation where the downtrend looks likely to continue based upon the huge headwinds facing the European economy, especially as the Federal Reserve is likely to continue tightening. The ECB is stuck with an economy that has to worry about energy, while the Federal Reserve is hell bent on crushing inflation. In other words, this is a market that I do think will test that 0.95 level again, and if we can break down below there, it’s likely that the market could go much lower.

If we were to turn around and break above parity, that could change some things, but ultimately this is a market that is in a downtrend so I think it would take a lot to change the overall attitude. In fact, I think the only thing that could change this is if the Federal Reserve suddenly changes its monetary policy, something that seems very unlikely. Regardless, I’m simply looking for some type of value in the US dollar that I can start shorting this pair again.

EUR/USD Price Forecast Video for 12.10.22

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