Euro Continues to Undulate

The Euro has rallied a bit during the trading session on Wednesday, but it looks as if we are going to continue to see selling pressure just above, so I do think that it is only a matter of time before sellers come back in. Ultimately, I like fading rallies and I think that even if the Federal Reserve sounds a bit more dovish than anticipated, it is very possible that we will see the Euro rally, just to see falling prices again.

EUR/USD Video 17.03.22

I believe that the 1.11 level above will more likely than not cause resistance, extending to the 1.12 handle. The 50 Day EMA at the 1.12 level will continue to fall and is going to offer a bit of dynamic resistance. Looking at this chart, it is obvious that we are in a downtrend and of course, there are a lot of problems in the European Union. I do not think that goes away simply because the Federal Reserve loosens its stance on inflation fighting. That being said, the market is very likely to continue to see plenty of value hunting when it comes to the greenback, and therefore I believe that we will try to go looking towards the 1.08 level underneath.

Looking at this chart, I just do not see an argument for trying to buy the Euro anytime soon, especially as the European Union has had some horrific-looking economic figures as of late, and I just do not see that changing as Europe has a whole host of inflationary and geopolitical issues at the moment. Even if the Federal Reserve steps back a bit, the interest rate differential will continue to favor the greenback.

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