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EUR/USD Weekly Price Forecast – Euro Gets Crushed

By:
Christopher Lewis
Published: Aug 19, 2022, 14:48 UTC

The euro has been crushed during the course of the week, as we now look as if we are getting ready to reach the parity region.

Euro FX Empire

In this article:

Euro vs US Dollar Weekly Technical Analysis

The Euro has broken down significantly during the trading week to threaten the parity level yet again. At this point, it’s only a matter of time before the Euro does break down below the parity level, and perhaps tries to reach the 0.98 level, maybe even lower than that. All things being equal, this is a market that favors the US dollar for a multitude of reasons, not the least of which will be the interest rate differential between the two economies.

The European Union has a whole host of problems heading into this winter, not the least of which will be the fact that there is going to be a supply issue when it comes to natural gas. It’s very likely that the EU is going to have a horrible winter because they are already in a situation where they are probably going to have to cut back energy to keep both homes warm, and manufacturing going. Europe is an absolute mess, and therefore I think we will continue to see money flowing toward the US dollar as it is considered to be safe. Furthermore, you also have the US bond market which is attracting a lot of inflows as well.

If we do rally from here, the 1.01 level will be resistance, the 1.03 level will be resistance, and of course, the 1.04 level will be resistance again. I have no interest in buying the Euro anytime soon, but if we did break above the 1.06 level, then I would have to have to consider reevaluating the entire situation and perhaps look for a buying opportunity.

EUR/USD Price Forecast Video 22.08.22

For a look at all of today’s economic events, check out our economic calendar.

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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