Euro Launches Higher
Euro vs US Dollar Technical Analysis
The Euro has shot straight up in the air during the trading session on Wednesday as word got out that there was going to be a news conference after the next peace talks between the Russians and Ukrainians, so traders immediately started thinking about a peace deal. Whether that is true or not is a completely different question, and it is very likely that any sense of disappointment will send the Euro much lower.
It is worth noting that the 1.11 level has been resistant previously, extending all the way to the 1.12 handle. It is also worth noting that the 50 Day EMA sits right in the middle of this range, so I do think that there is a high probability that we pull back from here. I will be shorting this market at the first signs of exhaustion or the first “bad news” that comes out of the peace talks. The market is trying to get ahead of itself at the moment, and I do think that most of the “good news” is probably just about priced in at this point. Signs of exhaustion will be sold into, as then it opens up the possibility of reaching back towards the bottom.
The interest rate differential continues to favor the US, and of course, the economic situation in the European Union is doing the Euro no favors anyway. Keep in mind that the markets will continue to be very noisy, and therefore I think that we need to wait for the market to prove itself because quite frankly it would take a lot to change the overall trend. Yes, news can throw the market around, but the Euro was falling Long before the war started.
EUR/USD Price Forecast Video 30.03.22
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