EUR/USD Weekly Price Forecast – Euro Continues to Break Down

Euro vs US Dollar Weekly Technical Analysis

The Euro has initially tried to rally a bit during the trading week, but then broke down below the 1.05 level. By getting through that support level, the market looks as if it is going to go much lower, perhaps reaching down to the parity level over the longer term. Any rally at this point in time will more than likely be shorted rather quickly, as the trend is so strong. The market continues to punish the European Union for poor economic figures, and of course the interest rate differential between the two economies.

The Federal Reserve is going to remain hawkish going forward, at least in the near term. Because of this, there is no real reason that the Euro should find its footing, unless of course the European Central Bank changes its attitude. The Federal Reserve is hawkish, and the ECB is doing everything it can to allow some hope of growth on the continent. We also have to worry about things like energy in the EU, which of course is toxic for an economy when there is a shortage of it. It continues to look very dire for Europe, as there seems to be no real chance of the energy situation changing.

As long as all of these poor fundamentals influence the European Union, this no reason to think that this market turns around for anything more than a short-term bounce. That short-term bounce is something that I am more than willing to jump all over, with an eye on the 1.05 level, and then the 1.06 level in the short term, perhaps even as high as the 1.08 level.

EUR/USD Price Forecast Video 16.05.22

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