Euro Dipping Lower

Euro vs US Dollar Technical Analysis

The Euro has drifted a bit lower during the trading session on Monday, as we have broken down below the three hammers that formed during the previous week, and therefore it is likely that we continue to go lower. At this point, the market probably trying to get to the 1.0850 level, which is an area we had bounced from previously. After all, the market has been favoring the US dollar for quite some time, and of course, we have a whole host of problems in the European Union. The interest rate differential alone should send the US dollar higher, but we also have plenty of issues in the European Union that cause problems.

The inflationary pressures in the European Union will continue to show a slowing economy, not only due to the higher input costs, but also the fact that growth is relatively slow on the continent. Ukraine war continues to cause major issues as well, and therefore people will be concerned about the possibility of a knock-on effect throughout the economy.

With all of this being said, there are also concerns about safety in general, and that favors the US dollar. The fact that the yields in America continue to spike will also play a part in this market, and of course, the overall downtrend is a big feature as well. The markets will continue to be one that I will be looking for fading opportunities to take advantage of, and I will do so at the first signs of exhaustion on any short-term rally. In general, it is a matter of waiting for short-term opportunities to the downside.

EUR/USD Technical Analysis Video 29.03.22

For a look at all of today’s economic events, check out our economic calendar.