EUR/USD Weekly Price Forecast – Euro Plunges Through Parity

Euro vs US Dollar Weekly Technical Analysis

The Euro has plunged through the parity level to show signs of weakness yet again. However, this is a market that I think given enough time will show an opportunity to get short yet again. Ultimately, the 1.05 level above is an area that should be resistance, and therefore I think a sign of exhaustion would be a nice selling opportunity. The 1.05 level is an area that should be important as far as resistance is concerned, and as far as buying this pair is concerned, we would have to break above the 1.08 level to be convincing.

If we break down below the bottom of the candlestick for the trading week, then the market is likely to go to the 0.98 level. Ultimately, a lot of this is going to come down to the interest rate differential between the two economies, and of course what happens with the Federal Reserve. The ECB is threatening a couple of token interest rate hikes, but at the end of the day, it’s also an economy that has to worry about things like energy.

It’s more likely than not that the ECB will turn right back around and reverse course much quicker than the Federal Reserve ever will. It’s worth noting that the candlestick for the week is starting to look more and more like a hammer, so there is the possibility of a significant bounce. However, at the first signs of exhaustion I’m sure the market will punish the Euro, and continue to run to the US dollar over all. Expect volatility, but I still believe that the fundamental issues lineup for the dollar to be stronger.

EUR/USD Price Forecast Video for the Week of 18.07.22

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