EUR/USD Price Forecast – Euro Continues to Show Extreme Volatility
Euro vs US Dollar Technical Analysis
The Euro continues to be very noisy, and therefore you need to look at it through the prism of a market that is trying to figure out where the bottom is. We are nowhere near it from what I can see, and I do think that we continue to see a lot of volatility and selling occasionally. Ultimately, the market is likely to continue seeing a lot of selling pressure every time we rally, so therefore I look at this as a “fade the market” type of situation. The parity level above will continue to be significantly resistant, and I think it’s going to take a small miracle to get above there for any significant amount of time. In fact, it’s going to take central bank intervention or attitude changes to make that happen.
If we do break down below the 0.95 level, it’s likely that we go much lower, perhaps breaking down to the 0.90 level eventually. Ultimately, this is a market that I have no interest in trying to buy, and I do think that the Euro continues to be a bit of a punching bag for the rest of the world. At this point, this market is overdone, so look for some type of bounce in the short term, but also look at it as an opportunity to pick a “cheap US dollars” in the short term. I do believe that eventually we have a scenario where we have plenty of runway to start shorting, but remember that bear market rallies tend to be brutal, and I do think that we have a good shot at seeing one relatively soon.
EUR/USD Price Forecast Video for 29.09.22
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