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EUR/USD Price Forecast – The Euro Stalls At a Major Resistance Barrier

By:
Christopher Lewis
Updated: May 20, 2022, 15:39 UTC

The Euro has gone back and forth during the course of the trading session on Friday as we continue to see quite a bit of noisy behavior.

EUR/USD Price Forecast – The Euro Stalls At a Major Resistance Barrier

In this article:

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during trading on Friday, as we are sitting just below a significant resistance barrier in the form of 1.06 just above. This is a market that has been in a downtrend for quite some time, and quite frankly deserves to be as the Federal Reserve is much tighter than the BCE, as well as many other central banks. All things being equal, this is a market that is in a downtrend and therefore you need to think of it in the attitude of “selling the rallies.”

Underneath, the 1.05 level is a large, round, psychologically significant figure that will attract quite a bit of attention. If we can break through there, then we can continue the overall downtrend. I have no interest in trying to buy this market, but if we do break above the 1.06 handle, then the 50 Day EMA could be the next resistance barrier, followed by the 1.08 level. The 1.08 level has been previous support, and now it should see plenty of selling pressure. At this point, I think that you would have massive shorting potential. In fact, as long as we stay below there then I am looking to sell rallies at the first signs of exhaustion.

The market had previously formed a bearish flag, and therefore I would anticipate that we will try to fulfill the measured move, which is much lower than where we are right now. At the first signs of exhaustion, as likely that we will pick up momentum and therefore could accelerate rather quickly to the downside, especially the first signs of fear.

EUR/USD Price Forecast Video 23.05.22

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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