Euro Continues to Threaten Support Level

Euro vs US Dollar Technical Analysis

The Euro has fallen a bit during the trading session on Friday, but the 1.08 level continues to offer support. By doing so, the market suggests that it is trying to continue to break down below that level. The area between 1.08 and 1.06 should be very noisy, so therefore I think is likely that the market will continue to see a lot of choppy behavior in that area. For what it is worth, the British pound has broken through its major support level and has made a serious attempt to get to the bottom of the consolidation area, and the Euro may continue the downward shot.

Any rally at this point is likely to continue to see sellers come back into this market every time we rally, and at the first signs of exhaustion, I will short the Euro. It is not until we break above the 50 Day EMA that I would consider going long, and even then I would have to see what is going on in the fundamental picture. The Federal Reserve continues to be very hawkish, and therefore it is likely that we will continue to see the US dollar strengthen overall.

At this point, the market is likely to see plenty of reasons to get short of this market, not only due to the Federal Reserve, but all of the problems in the European Union. The interest rate situation still favors America, and of course, the economic situation does as well. This is a market that should continue to find plenty of reasons to fall, but we are at a major support region.

EUR/USD Price Forecast Video 25.04.22

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