EUR/USD Price Forecast – Euro Plunges Again
Euro vs US Dollar Technical Analysis
The Euro has fallen hard during the trading session on Monday, but has also bounced equally as hard, as we continue to see plenty of volatility. Overall, the US dollar has been like a wrecking ball against almost everything, including the Euro. Ultimately, the market is likely to continue seeing selling every time it rallies, and now it appears that the Euro, although overdone to the downside, is likely to test the 0.95 level underneath.
At this point, the parity level above will be your ceiling, with the 50-Day EMA now approaching that level. The European Union is going to suffer the consequences of what could be a very dangerous winter. Ultimately, I have no interest in buying the Euro anytime soon, or perhaps more specifically, I have no interest in shorting the US dollar anytime soon.
If we do break down below the 0.95 level, the bottom almost certainly fall out of the euro. Ultimately, I do think that the US dollar has much further to go, especially if the winter is cold in the European Union, as a lack of energy is going to be paralyzing for the economy.
In fact, there are major industries right now that are putting in contingency plans for if and when there are blackouts over the next several months. Rallies at this point in time should see plenty of resistance above, so I am more than willing to short this market every time they show signs of exhaustion. As far as buying is concerned, we would need to see the Federal Reserve change its monetary policy.
EUR/USD Price Forecast Video for 27.09.22
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