EUR/USD Price Forecast – Euro Recovers From a Serious Plunge

Euro vs US Dollar Technical Analysis

The Euro initially plunged lower during the trading session on Friday to show signs of weakness yet again, as we have broken through the 1.01 level. However, there has been a significant bounce, and as we head into the weekend it would not be surprising all to see a bit of short covering. We are oversold, and that bounce could go all the way to the 1.04 level before changing anything at all. The market has plenty of noisy behavior ahead of it, so I think that we are looking at a situation where we are looking to “fade rallies” as per usual.

The parity level is going to be hit soon, and at this point in time, it’s going to be much sooner than I originally thought. With that thought process, one would have to think that there would be a significant amount of buying pressure in that general vicinity, based upon psychology alone. This means that we could get a nice bounce, but unless something fundamentally changes, it’s difficult to imagine a scenario where this market turns around for a bigger move. Any time at rallies, you have to be looking at it as a potential opportunity to “buy cheap US dollars.”

It’s not till we break above the 1.06 level that I would remotely consider buying this market, and even then I’d have to pay close attention to what the bond markets are doing, the Federal Reserve is saying, and of course anything that the ECB has shifted as far as expectations.

EUR/USD Price Forecast Video 11.07.22

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