EUR/USD Price Forecast – The Euro Continues to Hang on To the 1.05 Level

Euro vs US Dollar Technical Analysis

The Euro initially fell on Wednesday but has turned around a bit to show signs of life again. By doing so, it looks as if the market is going to continue to see a lot of confusion, therefore I think it’s a simple sign that we are trying to figure out exactly what it is the market is going to do next. Clearly, the Euro is a bearish instrument overall, but it is probably worth noting that the selling pressure is somewhat overdone. Because of this, we may get a little bit of a relief rally, but I would look at that as a selling opportunity.

The 50 Day EMA is grinding lower, currently hanging about the 1.0650 level. It is sloping downward, and I do think that it will eventually touch the price over the next couple of weeks. That should offer dynamic resistance, so I think rallies are going to be somewhat limited because of this. Furthermore, there is a cluster of selling just below the 1.08 level, which will be even more difficult to overcome.

Underneath, we formed a bit of a “double bottom” near the 1.04 level, and breaking down below there would of course open up fresh selling as it would be a significant breach of support. Ultimately, I think this is a market that will probably go below that level, perhaps reaching the 1.02 level eventually. Underneath that, then we would be looking at a move to parity, which a lot of people think will happen sometime this summer.

EUR/USD Price Forecast Video 23.06.22

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