The Euro Falls Into Major Support

Euro vs US Dollar Weekly Technical Analysis

The Euro has broken down a bit during the trading week to reach the 1.08 level. The 1.08 level is a major support level, and therefore if we break it down below it, it would be a negative sign. However, there is a lot of noise between there and the 1.06 level, and I think it is going to take quite a bit of effort to make that move. That being said, it does look as if we are going to make an attempt at the move lower.

Rallies at this point in time will be treated with suspicion, with the 1.10 level being an important marker. The 1.12 level would be even more resistant, and if we can break above there, it could even be a trend change. Having said that, it is going to take a lot of momentum to make that happen, and of course a major shift in attitude about the Federal Reserve. I do not see that happening anytime soon, especially as the European Union is going to continue to have to worry about energy, and that is not going to help the situation.

Looking at this chart, we are seemingly accelerating to the downside, but we are also very close to a major bottom. I would anticipate a lot of noisy behavior, but I think it is probably easier to fade rallies in this market. The problem here is that you may not be able to do so on a weekly chart, you may have to look to the daily chart or even lower time frames.

EUR/USD Price Forecast Video 18.04.22

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