Euro Continues to Test Support

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the trading session on Thursday as we are testing the 1.08 level underneath offering a significant amount of support. At that point, the market would continue to see buyers, but if we were to break down below that level, there is a huge area of the previous action that we have seen play out previously. Ultimately, this is a market that I think continues to see noise, but with the various problems in the European Union going on at the same time, I think it is difficult for the Euro to catch a major bid.

The 50 Day EMA is cutting through the 1.11 level and dropping quite drastically. At this point, we may get a bit of a squeeze if it continues to drop, but all things being equal this is a market that I think is going to be more noise than anything else. At this point, I believe that the market is trying to carve out some type of trading range, and as we head into the weekend it is very likely that we will continue to see a lot of back-and-forth trading.

I do not expect to see an explosive move in the short term, but eventually, we will have to make some kind of decision for a bigger trade. Right now, a simple range-bound system probably works out the best, recognizing that the market is going to be choppier than anything else in the short term. Keep in mind that this is a market trying to find its footing, so these types of moves tend to be very noisy.

EUR/USD Price Forecast Video 08.04.22

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