Euro Gives Back Previous Gains

Euro vs US Dollar Technical Analysis

The Euro has initially tried to rally on Thursday but gave back gains to reach the 1.11 handle. This is an area we had broken out of just 24 hours earlier, so that suggests that the market is continuing to follow the 50 Day EMA just above as potential resistance. Ultimately, this is a market that will continue to be very choppy, but it is very much in a downtrend despite the fact that we did rally quite nicely over the previous couple of sessions.

The 1.12 level above has offered a bit of resistance and is an area where I do believe we will continue to see noise. At this juncture, I think that the area will continue to be very difficult to overcome, especially after what we have seen during the trading session on Thursday. If we break down below the 1.11 handle significantly, it is likely that we go looking towards the 1.10 level after that.

The market breaking above the 1.12 level would obviously be very bullish, but at this point in time, I think that the market could go looking to the 1.13 level rather quickly, and then possibly as high as the 1.15 handle. That being said, there are a lot of negative factors that influence the Euro, not the least of which of course would be the war in Ukraine. Beyond that, Germany had to walk back its GDP projections just 24 hours previously, suggesting that the European Union is going to continue to struggle to find growth. Interest rate differential continues to favor the US dollar as well.

EUR/USD Price Forecast Video 01.04.22

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