EUR/USD Price Forecast – Euro Continues to Flirt With the 50-Day EMA

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the trading session on Tuesday, as the 50-Day EMA continues to offer a bit of resistance. Furthermore, it’s worth noting that it is at essentially the 0.99 level, and therefore I think a lot of people are going to be looking at this as a “fade the rally” type of market, as we continue to see the Federal Reserve tight monetary policy. Furthermore, the European Union has a huge issue that involves a problem with energy this winter.

Looking at this chart, it’s likely that we will continue to see a lot of back-and-forth type of trading, but I still believe that the overall downward trend is very much intact. Ultimately, the market is likely to test that 0.95 level yet again, especially as the Federal Reserve is still fighting raging inflation in the United States. With this, the market is likely to continue to see a lot of back-and-forth, but I do think that as soon as we see signs of exhaustion there will be people willing to take advantage of “cheap US dollars.”

Furthermore, the downtrend line is very much intact, so I think you need to pay close attention to that as well. I do believe that we test the lows, and it’s also possible that we break down through it. The 0.97 level underneath probably offers a bit of support in the short term as well, but it being broken will probably bring even more sellers into the market. If we were to break above the parity level, then we have to reassess the entire situation.

EUR/USD Price Forecast Video for 26.10.22

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