EUR/USD Weekly Price Forecast – Euro Attempts to Recover

Euro vs US Dollar Weekly Technical Analysis

The Euro has bounced quite significantly during the trading week to reach above the 1.05 level but seems to be struggling with the 1.06 level at the moment. Because of this, it is very likely that we will continue to see sellers jump into this market, and it is worth noting that on the daily chart, there is a bearish flag that we are retesting. This is a market that has been in a freefall for quite some time, which makes quite a bit of sense considering just how hawkish Jerome Powell has become. As long as that remains the case, it is difficult to imagine a scenario where the US dollar sells off against some of these other currencies, especially the Euro itself.

Keep in mind that the European Union has a whole host of issues that it is dealing with right now, so it does make sense that we would see the Euro struggle as well. Furthermore, with the lack of growth in the European Union, the ECB is light years away from being able to tighten monetary policy. This leads into a “one-way trade”, and therefore I will look at any bounce in this market as a potential opportunity to pick up “cheap US dollars.”

It is not until we break above the 1.08 level on a daily close that I would consider going long, something that does not look to be very likely at this juncture. With this, fading rallies will continue to be the way most traders play this market, and of course the way I will be as well. Given enough time, we could find ourselves chasing parody.

EUR/USD Price Forecast Video 23.05.22

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