EUR/USD Price Forecast – Euro Continues to Consolidate

Euro vs US Dollar Technical Analysis

The Euro has had a rough session on Tuesday as we continue to see a lot of noisy behavior right around the 50 Day EMA. The market has been in a downtrend for a while, and it certainly seems as if it has a significant amount of resistance just above. Because of this, it is likely that we will continue to see a lot of back-and-forth noise in this general vicinity, but we are most certainly in a downtrend and that is something worth paying attention to. Most of the bounce was probably due to the fact that the US dollar was overbought. At this point, we have had that relief rally in the Euro, so it’s very likely that we will continue to go lower.

It is worth noting that Christine Lagarde has stated that several 25 basis point interest rate hikes are coming, but that is much less hawkish than the Federal Reserve. Furthermore, a lot of traders out there do not believe that the ECB will be able to do any of that. The European economy is still a mess, so it’s likely that we will continue to see a push lower. After all, when things are bad, it’s always the US dollar they run to first.

If we do break it down, the 1.05 level should be supported. On the other hand, if we were to rally from here, and get above the 1.08 level, it’s not until we get above the 1.09 level that it will have shown a significant change in attitude. Until then, I still look at this as a potential “sell the rallies” type of marketplace.

EUR/USD Price Forecast Video 01.06.22

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