EUR/USD Price Forecast – Euro Continues to Power Higher

Euro vs US Dollar Technical Analysis

Volatility continues to be the main feature of financial markets around the world, and the Euro is no different. Traders have gone off the rails at the idea of “just” 7.7% inflation in the United States. While it does show that inflation is slowing down, when you look at the internals, one of the biggest decreases was in the price of used cars. Seriously.

That being said, the market had been begging for a reason to explode to the upside, so now it has it. That being a catalyst is not a huge surprise, however what would be surprising is if this rally stuck forever. While it does seem brutal in the last couple of days, and you could even say the last couple weeks, the reality is that we are nowhere near a complete trend change when you look at the longer-term chart.

It is because of this that I will be looking for opportunities to sell the Euro, but we will have to see what happens when we do finally get to the 200-Day EMA. If we simply blow through it, then you have to start thinking in the other direction, despite the fact that the fundamentals do not line up that way. I have a sneaking suspicion that by the time this is all said and done, it’s going to be an excellent opportunity to pick up US dollars again.

Several Federal Reserve speakers will be out over the next couple of days, and they have already started to walk the market back from its access, because the ironic thing is that the more “risk on” the markets go, the more the Federal Reserve is going to have to tighten.

EUR/USD Price Forecast Video for 14.11.22

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