EUR/USD Weekly Price Forecast – Euro Continues to Drop

Euro vs US Dollar Weekly Technical Analysis

The Euro has spent most of the week falling, as we are now threatening to break down below the $0.97 level, an area that we have not seen in well over 20 years. At this point, the market is likely to continue seeing a “fade the rally” type of situation, as the European Union has to worry about energy supply this winter, and of course the Federal Reserve remains very tight with its monetary policy. Quite frankly, the biggest concern for most people around the world right now is inflation, and the Fed is most certainly doing everything it can to export that very same inflation. After all, as currencies get bashed, goods in those countries become much more expensive.

This is a major problem for the Europeans because they have to worry about energy, as well as a war right on their doorstep. I just don’t see how Europe gets through the winter easily, and therefore I do think that it is probably a only a matter of time before we drop down to the 0.95 level. It’s amazing, but my target keeps dropping because quite frankly the market keeps capitulating.

The bottom has fallen out of support, and now we are in a bit of a freefall. The US dollars like a wrecking ball gets almost everything in the world right now, in the Euro has so many problems on its side that there is no scenario in which I’m willing to buy this pair currently. The only thing in the world they can save the Euro right now is going to be Jerome Powell, and he does not look like he’s going to change his mind anytime soon.

EUR/USD Price Forecast Video 26.09.22

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