EUR/USD Price Forecast – Euro Gives Up Early Gain

Euro vs US Dollar Technical Analysis

The Euro has rallied to kick off the Monday session but has given back to the early gain to show signs of hesitancy again. By doing so, the market looks as if it is ready to continue the overall malaise that we have seen recently, with the US dollar strengthening against almost everything. The Federal Reserve continues to tighten monetary policy, and of course, the ECB is in no position to start tightening monetary policy anytime soon.

When you look at this chart, you can see that there is a double bottom underneath, near the 1.04 region. The 1.04 level is an area that I think will continue to see a lot of interest, so if we were to break down below there, it would indeed be a very negative turn of events for the Euro. At that point, I would anticipate the market could reach the 1.02 level, and then the parity level. I believe that we had parity sometime this summer, but it needs to be tempered with the idea that almost anything is possible in this type of trading environment. Ultimately, I think the market will continue to see a lot of choppy volatility, and therefore you need to be cautious with your position size and be nimble getting in or out of the market as things are moving so quickly.

Just above, we have the 50 Day EMA sloping toward price, and I think it is probably only a matter of time before it comes into the picture to offer dynamic resistance. I still believe in selling rallies in this pair, until the Federal Reserve changes its attitude, something that it has not done yet.

EUR/USD Price Forecast Video 28.06.22

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