EUR/USD Price Forecast – Euro Pulls Back With Rate Hike

Euro vs US Dollar Technical Analysis

The Euro has initially tried to rally during the trading session only to turn around and fall. Ultimately, the parity level seems to be a bit of a target and as the ECB has raised interest rates, they brought overnight funding the 2%, as expected. Because of this, a lot is probably going to head back toward America again and deciding on what the Federal Reserve will have to do. And the US dollar has been like a wrecking ball, and I just don’t see how the changes.

The 50-Day EMA is near the 0.99 level, and rising, so that could provide a little bit of support, but quite frankly if this pair does rally, it’s going to be about the US dollar and not the Euro. The European Union has a mess on its hands, and therefore you need to trade it as such. It’s difficult to imagine why you would want to hold euros for any significant amount of time, although there might be an argument to be made for short-term bounce type of trade.

If we were to break down below the 50-Day EMA, that almost certainly opens up the euro for a move down to the lows again, and I would expect that sooner or later, especially as we head into the winter and the European Union is short on energy. Obviously that’s not exactly indicative of an economy strengthening, and therefore you need to keep that in the back of your mind. The higher this market goes, the more it sells off in the future would be what I envision for the next couple of months.

EUR/USD Price Forecast Video for 28.10.22

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