EUR/USD Price Forecast – Euro Breaks Down

Euro vs US Dollar Technical Analysis

The Euro initially tried to rally a bit during the trading session on Tuesday, but then broke down rather significantly. At this point, the market is breaking down, and it opens up the move down to the 1.02 level. After that, I do expect that we are ready to go down to the parity level, and at this point, it’s likely that the market could go down rather quickly. This is a brutal breakdown, and now that we are starting to see things like hot water rationing in cities like Hamburg, that is not what you want to see in a strong currency.

At this point, it’s not until we break above the 1.05 level that I would be a buyer, and even then, I’d have to reevaluate the entire situation as I think there is significant resistance all the way to the 1.06 level. The size of the candlestick tells me that there are plenty of sellers out there and that there is plenty of momentum. Ultimately, this is a market that I believe will have plenty of sellers every time it tries to rally. Ultimately, this is a market that has plenty of negativity attached to it, and therefore I think that we are going to see an acceleration occasionally, which is typical for the Euro as it does nothing for long periods of time and then makes a sudden move.

The market has been negative for quite some time, and therefore I just don’t see how this changes anytime soon. Especially as the European Union is struggling to fight off its dependency on Russian energy, it’s difficult to imagine how this currency suddenly takes off with a tightening Federal Reserve.

EUR/USD Price Forecast Video 06.07.22

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