EUR/USD Price Forecast – Euro Continues to Plunge

Euro vs US Dollar Technical Analysis

The Euro has fallen again during trading on Friday as we continue to see a lot of US dollar strength overall. The market will continue to pay close attention to the Federal Reserve and of course the debacle happening in the European Union. After all, the Europeans are going to have to worry about being cold this winter, and of course manufacturing being shut down. There is nothing in Europe that suggests a healthy economy at this point, and that’s only going to get worse.

In fact, on the continent people are going to have to worry about tightening into an inflationary environment. In other words, a “hard landing” is all but ensured for that part of the world. I do not think this is a situation where you should be playing around, because quite frankly the market is going to continue to see a lot of issues going forward.

We are well below the parity level, so even the psychology has changed. I believe it is probably only a matter of time before we see the Euro drop even further but having said that we will have the occasional bounce. That bounce will be a nice shorting opportunity at the first signs of exhaustion. I think parity will continue to act as a major barrier, so as long as we stay underneath there, I think you continue to see more of the same behavior.

Underneath, we are now looking to reach the 0.95 level, perhaps even lower than that. It’s very likely that we will see real panic before it’s all said and done. Do not be surprised at all to see central bank starting to get involved, because quite frankly things are starting to get very unstable.

EUR/USD Price Forecast Video for 26.09.22

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