EUR/USD Price Forecast – Euro Continues to Dance Around Parity

Euro vs US Dollar Technical Analysis

The Euro has been all over the place during the trading session on Tuesday as we continue to see the collapse of the Euro in general. In fact, we have hung about the parity level for most of the day, as we start to test whether or not the market can break down below here. I do think it happens eventually, but we may have a short-term bounce before it does. After all, the market has fallen rather precipitously, and sooner or later you would anticipate seeing some type of reaction.

On a bounce, I believe that the 1.04 level will be the beginning of rather significant resistance, assuming that we can even get there. On signs of exhaustion, I would not hesitate whatsoever to sell this market, just as a breakdown below the lows would produce the same result. That being said, I do like the idea of bouncing and selling so that I can pick up “cheap US dollars.”

The 50 Day EMA is sitting at the 1.05 level and is breaking down below there. This tells you exactly how negative the market is, as the 50 Day EMA is 500 pips away from the current price. With that being said, the market is extraordinarily oversold, just as it is extraordinarily negative. Because of this, it’s a matter of finding valuable more than anything else. Ultimately, I think this is a market that cannot be bought, even if you knew that it was going to bounce tomorrow. A little bit of patience could go a long way in making profits in this market, because quite frankly the tightening Federal Reserve and the miserably weak European Union sets up for a “perfect storm.”

EUR/USD Price Forecast Video for 13.07.22

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