EUR/USD Weekly Price Forecast – Euro Gets Sold Off Again

Euro vs US Dollar Weekly Technical Analysis

The Euro initially tried to rally for the week, but gave bank gains as it looks like we are going to continue to “sell the rallies” every time they occur. On the weekly chart, this is an area that’s interesting to pay close attention to, because the 1.04 level has been so important. If we can stay above there, there might be the possibility of trying to build up some type of base, but right now it looks like everybody’s focusing on buying US dollars, and therefore I’m not looking for any type of great reprieve.

If the market were to bounce from here, the 1.06 level is an area that’s obviously been difficult to get above over the last three weeks, followed by the 1.08 level. The ECB has to worry about a lack of energy, while the Federal Reserve is going to remain very aggressive with its monetary policy. In this scenario, it sets up for a perfect “one-way trade” that most traders will be more than willing to take advantage of. With that in mind, I do believe that it is probably only a matter of time before we break through the 1.04 level and go much lower.

On that breakdown, the 1.02 level is my next target, followed by parity. I do think that we will see parity sometime this summer, especially as economic conditions continue to deteriorate. With the world heading into recession, the US dollar will continue to be very strong, at least through the next several months. In the meantime, it’s about trying to pick up “cheap US dollars.”

EUR/USD Price Forecast Video 04.07.22

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