EUR/USD Price Forecast – Euro Gets Boost From CPI Figures

Euro vs US Dollar Technical Analysis

The Euro has initially pulled back a bit during the trading session on Thursday to touch the 50-Day EMA. However, we’ve seen the CPI figures come out lighter than anticipated in America, with the reading of 0.4% month over month, missing the estimated 0.6% month over month. That being said, the Federal Reserve is still going to remain much tighter than the European Central Bank, but this was the first sign as far as Wall Street is concerned that the Federal Reserve is finally getting a handle on inflation. However, inflation is still just a touch under 8%, which is about 6% higher than the Federal Reserve is aiming for. In other words, there is a long way to go.

It is because of this that I believe eventually this turns into a selling opportunity. Obviously, things can change but right now it just looks like a nice knee-jerk reaction. The European Union is one of the last places I’d want to put money right now, so I do think that gets reflected in the currency market sooner or later. Keep an eye on the 200 day EMA above, it’s currently the 1.04 level, but is dropping.

I think we might have a nice relief rally for the Euro ahead, but I think you have to keep an eye on it and look at it through that prism. I don’t think it’s going to be anything more, despite the fact that we violated a very clear trendline. After all, the great thing about trendlines is that you can draw multiple trendlines on any given chart.

EUR/USD Price Forecast Video for 11.11.22

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