EUR/USD Price Forecast – Euro Pulls Back
Euro vs US Dollar Technical Analysis
The Euro has pulled back a bit during the trading session on Friday to test the previous resistance level. This makes a certain amount of sense because we had hit the 50 Day EMA, an indicator that has been relatively reliable over the longer term. There’s also a lot of concern around the world, not the least of which would be the lack of energy in Europe that is coming down the road. I think investors are starting to position themselves for a very bearish stance when it comes to the European Union, so I do think this market goes much lower.
That being said, we have a little bit of a short-term fight on our hands, so I would like to see this market breakdown below the 1.02 level for continuation. Whether or not that happens is totally irrelevant to me, because if we do rally from here, I’ll just be looking to short the euro from a higher level, specifically somewhere near the 1.04 level, or maybe even the 1.05 level, an area I would love to short from if I get the opportunity.
Underneath, the parity level is worth watching, and it is the gateway to much lower pricing, something that I do think that will eventually see, but it may take quite some time to get down there as this pair tends to dawdle quite a bit. Furthermore, there is always the “hope rally” that the markets tend to have from time to time, so I think it does make a certain amount of sense that the Euro will get the occasional bounce. I’m still in a “fade the rally” type of mode in this market, but I also recognize that in these types of markets, you need to be in and out rather quickly.
EUR/USD Price Forecast Video for 16.08.22
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