Euro Looking Vulnerable Again for the Week

Euro Dollar Weekly Technical Analysis

The Euro fell a bit during the trading week to reach down to the 1.10 level. This is an area that will attract a certain amount of attention obviously, but it is worth noting that we have been through here before. If we were to follow the previous action, the market would more likely than not go looking towards the 1.0850 region, possibly even lower than that.

On a rally, I think it would more likely than not struggle near the 1.11 handle, and almost certainly at the 1.12 level after that. The market has seen a lot of selling pressure, and I do believe that will more likely than not continue to be the case. The Euro has far too many issues attached to it to believe that it is suddenly going to be a currency that everybody wants. The market has been in a downtrend for quite some time, and I just do not see how that changes suddenly.

The war in Ukraine is a major issue because it not only threatens Ukraine but is right on the doorsteps of the European Union itself. There is a refugee crisis, as well as a potential food crisis on the continent. Obviously, there are going to be major issues with energy as well, so this will continue to have a negative influence on the European economy overall. The economic numbers were not exactly great, to begin with, so it is hard to imagine how Europe suddenly strengthens, especially in relation to the United States which is somewhat shielded from most of these problems.

EUR/USD Technical Analysis Video 28.03.22

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