Euro Gives Up Early Gains

Euro Dollar Forex Pair Technical Analysis

The Euro has initially tried to rally during the trading session on Friday as we have seen quite a bit of support just below. However, we have seen a pullback as well, so now it looks as if we are going to hang about the 1.10 level and look for direction. The Euro has suffered at the hands of the Ukraine war, energy concerns, and of course a lower interest rate offering than the United States. Beyond that, there are a lot of inflationary concerns, and the economic outlook for Europe is not as strong as it would be for the United States.

If we were to break down below the lows of the previous three candlesticks, it is likely that the Euro trades down to the 1.0850 level, an area that has been supported previously. On the upside, if we were to break above the 1.11 handle, then it is possible we could go to the 1.12 level, but obviously, that is going to take a lot of effort. At this point, I believe that the market is trying to figure out what it wants to do for the longer-term move, so the next few days could be crucial.

That being said, the Euro typically trades in a very slow and methodical manner, with the occasional burst in one direction or the other. As we continue to shrink the overall range for each day, we may be building up inertia for the next move. Either way, there is probably going to be more momentum in other pairs against the US dollar, regardless of the direction.

EUR/USD Technical Analysis Video 28.03.22

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