EUR/USD Price Forecast – The Euro Has Rallied From Parity

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Friday as we head into the weekend. The parity level has offered a little bit of support, at least during this past week. Ultimately, this is a market that I think continues to pay close attention to this region, due to the fact that there’s so much psychology around it. If we do get a daily close below the parity level, that will almost certainly kick off the great unwind that seems to be in the midst of happening right now. Ultimately, I have no interest in buying this pair and I think rallies will continue to offer plenty of resistance.

The 1.02 level will be a major short-term resistance barrier, and then after that, we would be looking at the 1.04 level. The 50 Day EMA is currently slicing through the 1.05 level and dropping rather drastically. Because of this, there is plenty of dynamic resistance above as well, so quite frankly I just don’t see an argument where you could start buying this market.

Keep in mind that the Federal Reserve continues to tighten monetary policy, therefore it’s likely that we will continue to see the US dollar pick up plenty of strength. Given enough time, this is a market that I believe will eventually find plenty of negativity, and therefore I do think eventually we punch through the bottom. That’s exactly what I expect to happen, so therefore I am looking for opportunities to short this market but may need to see a bit of a bounce before I put any real amount of money to work.

EUR/USD Price Forecast Video for 18.07.22

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