EUR/USD Price Forecast – Euro Continues to Struggle

Euro vs US Dollar Technical Analysis

The Euro has fallen a bit during the trading session on Monday as we continue to see more negativity than anything else. This is especially true when you start to look at the Euro against the US dollar which is by far the strongest major currency out there. With this being said, I believe that at any timely rally, there has to be an argument to be said about shorting this market. 50-Day EMA appears to have caused a little bit of a short-term “ceiling in the market” the people will be paying attention to.

The fact that the 50-Day EMA is hanging around the parity level also suggests that we have quite a bit of resistance in that region, so I do like the idea of fading anywhere near there if we can get that opportunity. Signs of exhaustion show that the trend is ready to continue, and therefore could give us an opportunity. The market breaking above the parity level would be a major accomplishment for the Euro, but at this point I think we need to see a lot of things unfold at the same time in order to start to think that the Euro is going to be the currency to run to.

The first thing of course would be that the Federal Reserve would have to change its overall attitude, something that is not going to happen anytime soon. After all, the Federal Reserve is trying to fight inflation, not support risk assets. At the same time, the European Central Bank has a significant amount of problems to worry about, not the least of which of course is going to be a severe lack of energy in the region. In other words, lower is still the trajectory.

EUR/USD Price Forecast Video for 11.10.22

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