EUR/USD Price Forecast – Euro Gives Up Early Gains

Euro vs US Dollar Technical Analysis

The Euro initially tried to rally during the trading session on Friday, breaking above the 50 Day EMA. However, we have given up those gains rather quickly, as the jobs number in the United States came out bullish enough to drive interest rates in America higher. At this point, it looks like the bond market is still the only thing that matters, and as those yields in America rally, it drives more money into the US dollar.

Keep in mind that the Euro also has a major barrier in the form of the 1.08 level just above, so pulling back from here does make a certain amount of sense, to begin with. The market is likely to continue to see a lot of volatility, especially as the bond markets have been all over the place on both sides of the ocean. At this point, we break down below the lows of the trading week, then it opens up a move down to the 1.05 level.

On the other hand, if we were to see a move above the 1.09 level, it could change the overall attitude, but at this point, I think this is a scenario where it’s going to be very difficult to get above there, so therefore I’m looking for signs of exhaustion to sell, perhaps on short-term charts. I have no interest in buying the Euro anytime soon, and I do think that we will revisit the lows given enough time. The 50 Day EMA sits right where we are, so that will attract a certain amount of attention in and of itself.

EUR/USD Price Forecast Video 06.06.22

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