EUR/USD Weekly Price Forecast – The Euro Breaks Through Short-Term Resistance
Euro vs US Dollar Weekly Technical Analysis
The Euro has broken above the 1.0275 level to show signs of life and then broke to the 1.04 level. At this point, the market is likely to continue to see a lot of negativity in general, but we also are at least trying to do a little bit of a recovery rally. There has been a lot of talk recently about the US dollar finally cooling off, but when you look at this chart, you can see how asinine that assessment truly is. In fact, I don’t consider this trend changed until we break above the 1.06 level at the very least, and quite frankly it’s probably closer to the 1.08 level.
Keep in mind that bond markets had seen a shot higher in the yield department, therefore it makes quite a bit of sense that the US dollars has taken off. We are cooling off a little bit in the bond market, so that might allow for a bit of a bounce in the short term, so it’s possible that we could continue to show negativity over the longer term, so allowing for a bounce before we start shorting could be a nice opportunity.
If we break down through the parity level, then that opens up a drop-down to the 0.98 level rather quickly. Breaking below that level opens up the floor as well. Ultimately, this is a market that I think continues to see a lot of back-and-forth, so therefore I like the idea of shorting at higher levels, picking up “cheap US dollars.” The European Union has a major issue at this point going forward for the rest the year as far as economic growth is concerned, so I prefer the US dollar.
EUR/USD Price Forecast Video 15.08.22
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