Euro Drifts Lower Again

The Euro has fallen a bit during the trading session on Thursday to reach down towards the lows of both Tuesday and Wednesday, both of which were hammers. That is a very interesting event, as it shows that we are trying to break down through the bottom of these candles, and that sends markets much lower if that happens. At that point, I would anticipate the 1.0850 level.

EUR/USD Technical Analysis Video 25.03.22

On the upside, if the market was to break above the 1.1050 level, we probably go looking towards the highs of the last couple of weeks again. That being said, it is worth noting that we are forming something that looks a lot like a rising wedge, which is a bearish pattern. It is a bit early to call that, but if we break it down it will be confirmed.

Keep in mind that the yield differential between the Europeans in the United States is quite large and at this point, it continues to favor the United States dollar in general. Ultimately, this is a market that looks as if it is ready to continue more of the same. Ultimately, the market is in a downtrend and there is nothing on this chart to suggest that is going to change quickly. That being said, the market has definite negativity to it, and that is going to be especially true if we continue to see a lot of “risk-off” behavior. The market continues to selloff on signs of exhaustion going forward, and I do think that it is the way to play this market until something drastically changes.

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