Euro Reaches a Major Support Level

Euro vs US Dollar Technical Analysis

The Euro went back and forth during the trading session on Friday as it reached the 1.0850 level. This is an area that extends down to the 1.08 handle and opens up the possibility of the next leg lower. At this point, we need to determine whether this is going to perhaps form a “double bottom”, or if it is going to be a continuation lower. The next couple of sessions should give us an idea as to how this plays out, as we are at a crucial crossroads.

It is worth noting that the US dollar has been a juggernaut as everything else has fallen by the wayside. That being said, interest rates rising in America has a lot of money going into the greenback, not to mention the fact that we have a lot of concern out there about the global economy. In this scenario, the greenback attracts a lot of attention, mainly as fear driven trading. Ultimately, this is a market that continues to see a lot of choppiness, but it will be imperative to let the market decide what it wants to do before trying to jump in.

At this point, we are either going to get a breakdown, or a “W pattern”, both of which could be excellent signals. A little bit of patience could go a long way, and therefore traders will be looking for some semblance of clarity. Once we get that clarity, it is probably going to be a trade that could open up the possibility of a nice swing trade. Keep an eye on the way we close, it could give us a major clue.

EUR/USD Price Forecast Video 11.04.22

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