EUR/USD Price Forecast – Euro Gives Up An Early Gain

Euro vs US Dollar Technical Analysis

The Euro initially tried to rally during the trading session on Monday but turned around to show signs of hesitation. The 50 Day EMA is sitting right here and is going flat, so it suggests to me that perhaps we are trying to determine whether or not the next move is higher or lower. Quite frankly, the fundamental suggests that we are going lower, but a lot of traders are starting to think about the possibility of the ECB raising rates. If they do, that would obviously be very bullish for the Euro.

However, whether or not they are going to be as hawkish as the Federal Reserve is a completely different question. The Americans are much more hawkish than the Europeans, so even if we do get a little bit more aggressive behavior out of Europe, the reality is that there is still going to be more downward pressure.

From a technical analysis standpoint, the 1.08 level above is the beginning of rather significant resistance, extending to the 1.09 level. Breaking above that level would be extraordinarily bullish, and could open up a move all the way to the 200 Day EMA. However, it’s much more likely that we will find plenty of selling pressure that will eventually send this market below the 1.06 level. If that happens, the market is likely to continue down to the 1.05 level, and then eventually the lows again. Given enough time, it does make more sense for this pair to fall that it is to rise, but obviously the market will have its own gyrations and of course make up its own mind over the next several weeks.

EUR/USD Price Forecast Video 07.06.22

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