EUR/USD Price Forecast – Euro Gives Up Early Gains

Euro vs US Dollar Technical Analysis

The Euro rallied initially during the trading session on Wednesday but has given back some of those gains as it looks like the market is not quite ready to take off to the upside. After all, there is the ECB meeting on Thursday that will have a massive influence on where we go next. Because of this, it does make quite a bit of sense that people would jump back out of the market.

The 1.02 level continues to be an area of interest, so if we do pull back from here it’s likely that we break down a bit and look toward that parity level yet again. Ultimately, the market is going to continue to be very noisy, as there are a lot of moving pieces when it comes to the European Union, not the least of which is whether or not there’s going to be enough power.

Because of this, I still favor the downside and I think it is probably only a matter of time before we retest the parity level, an area that would obviously cause a lot of attention to be paid to the market. In that scenario, it’s very likely that we would see quite a bit of fight back at the parity level, but if we were to break down below that level, and perhaps, more importantly, close below it, that opens up the floodgates.

In the alternate scenarios we turn around and rallied, perhaps trying to get back to the 1.04 area. That begins a significant amount of resistance that I think would more likely than not attract a lot of attention and perhaps more importantly, short selling.

EUR/USD Price Forecast Video for 21.07.22

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