EUR/USD Price Forecast – Euro Continues to Fight

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Tuesday to break above the 1.05 level. However, the market is going to continue to see a lot of noisy behavior, and I certainly think that there is plenty of resistance above that could come into the scenario. The 50 Day EMA sits just below the 1.07 level, which is an area that I think will cause quite a bit of hesitation. Ultimately, I think that it is only a matter of time before the sellers come back in and push the euro lower.

There has been a little bit of chatter coming out of the ECB when it comes to the potential of rate hikes, but quite frankly the European Union has a lot of trouble when it comes to energy, inflation, and general malaise. In other words, the central bank probably can’t do too much, and therefore I think traders get a look at this potential with skepticism. With that being the case, I think if we break down below the 1.05 level, it’s likely we go down to the 1.04 level after that.

We did form a little bit of a “double bottom” in that region, but I don’t necessarily worry too much about it as support, because we are in such a major downtrend. In fact, it’s not until we break above the 1.09 level that I would consider the trend potentially changed, so therefore I think this remains a “fade the rallies” type of situation. This is especially true if interest rates in America continue to climb, which amazingly enough, they have. This is a downtrend, don’t over complicate it and look for opportunities.

EUR/USD Price Forecast Video for 22.06.22

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