EUR/USD Price Forecast – The Euro Continues to Reach Resistance

Euro vs US Dollar Technical Analysis

The Euro initially pulled back during the Thursday session but has found enough fine pressure to reach the massive resistance barrier at the 1.08 level. Whether or not we can break out above here is a completely different question, but I think we are killing time between now and the CPI numbers on Friday, despite the fact that the ECB had an announcement on Thursday. Quite frankly, the ECB probably has less of a runway than the Federal Reserve does, and as a result, it does make a significant amount of sense that we will fail to break out unless the CPI number changes the outlook for the Federal Reserve.

When you look at this chart, you can see that there is a major area of resistance between 1.08 and 1.09, so I just don’t have a scenario in which I am comfortable going long in this market until we break above the 1.09 level. At that point, then it would be more likely than not that the Euro would go looking to reach the $1.12 level.

On the other hand, if we turn around and break down below the low of the week, then it’s likely that the pair goes looking to the 1.05 level, perhaps even down to the 1.04 level where we had bounced from previously. Traders are looking at this as a situation where they may be able to fade this short-term rally, but we will need to get through the CPI announcement and the reaction before we can put any real money to work. With this in mind, expect a lot of choppiness between now and then.

EUR/USD Price Forecast Video 10.06.22

For a look at all of today’s economic events, check out our economic calendar.