EUR/USD Price Forecast – Euro Continues to Break Down

Euro vs US Dollar Technical Analysis

The Euro has found itself falling again during the trading session on Friday as it looks like we are going to be testing parity rather soon. If that’s going to be the case, it’s very likely that the market will see a bit of a reaction to that region, but we have already visited it, so it’s possible that we may finally break down through it. If that’s going to be the case, then it’s likely that we have a scenario where the US dollar takes off against almost everything, and risk appetite probably gets eviscerated across the board.

The market rallying from there just stipulates that we are not quite ready to have the complete breakdown. If we do see that, then I’ll be looking for some signs of exhaustion above that I can take advantage of and start selling again. The 50 Day EMA sits just below the 1.03 level, and that’s an area that I think a lot of people will pay close attention to. If we can break above the 50 Day EMA, then it’s likely that the market goes looking to the 1.05 level.

In general, this is a market that I think is destined to break through parity, because quite frankly there are so many problems in the European Union, I cannot imagine that the Euro has a good go of things over the next several months, but it is worth noting that there’s a lot of psychology at play in this general vicinity. I’m looking to fade signs of exhaustion, and if we get a daily close below parity, probably short there as well.

EUR/USD Price Forecast Video for 22.08.22

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