EUR/USD Price Forecast – Euro Attempts to Recover

Euro vs US Dollar Technical Analysis

The Euro has rallied just a bit during the trading session on Monday to show signs of stability, but at this point in time, the market seems to look at the 1.05 level as a little bit of a magnet. Ultimately, I think this is a market that is trying to determine whether or not we had just formed a true “double bottom”, but I believe that the overall fundamental picture still favors a US dollar. Because of this, I like the idea of fading rallies as they occur.

The 1.04 level underneath was the scene of the double bottom, so if we break down below there is likely that we go much lower, perhaps reaching the 1.02 region, perhaps even the parity level, perhaps by the end of summer.

The European Union has to worry about energy at the moment, and that will continue to weigh upon the Euro in general, and therefore I think every time we rally you should be looking for some type of exhaustion to jump on. After all, the trend in a currency pair tends to last for quite some time, so it’s difficult to imagine a scenario where we turn around suddenly. In fact, the only thing that I think would come into the picture to change the trend at this point is if the Federal Reserve were to change its overall attitude.

As of now, they still seem hell-bent on raising rates, with another full percentage point already promised. The ECB has shown the first cracks in its desire to tighten recently, so with that being the case I think the downtrend is still something you need to focus on. In fact, it’s not until we break above the 1.08 level that I would take any rally seriously.

EUR/USD Price Forecast Video 21.06.22

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