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EUR/USD Price Forecast – Euro Gives Back an Initial Gain

By:
Christopher Lewis
Published: Oct 6, 2022, 13:06 UTC

The Euro initially tried to break above the 0.9930 level, but then gave back gain as we continue to see the US dollar strengthen. Ultimately, the market is likely to see a lot of correcting as we head towards the jobs number.

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Euro vs US Dollar Technical Analysis

The Euro has initially tried to rally a bit during the trading session on Thursday but gave back gain to show signs of weakness yet again. Ultimately, the US dollar has been strong for quite some time, so therefore I think it does make sense that we would see a longer-term downtrend going forward. The 50-Day EMA has offered significant resistance, near the parity level. That should offer a bit of a “brick wall” as far as resistance is concerned, which of course ties right in with the overall negativity that we have seen in this pair and the 50-Day EMA has almost acted as a downtrend line.

The jobs number on Friday of course will introduce a significant amount of volatility, so my plan is to fade rallies in this market, recognizing that the EUR/USD pair is quite choppy to say the least, and will almost certainly be the norm. At this point, I do not have any interest in trying to get long of this market, but if we broke above the 1.02 level, then it’s possible that we could see a significant recovery of The Euro.

The Euro and the European Union will have to deal with the fact that this winter is going to be very difficult, as the energy situation in the EU is tenuous at best. I think at this point in time, we will continue to see a lot negativity when it comes to Europe, and therefore it will be reflected in the currency.

EUR/USD Price Forecast Video for 07.10.22

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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