The Euro Has Tested Support Yet Again

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the course of the trading session on Monday to show signs of hesitation near the 1.08 level. The 1.08 level has been an area of contention multiple times. That being said, the market is going to pay close attention to this area as it has been a major place of argument. If we were to break down below the 1.08 level, it is possible that we could go looking to reach the 1.06 level underneath.

If we bounce from here, the 1.0933 level could be significant short-term resistance, so if we were to turn around a break above there then we will more than likely challenge the 50 Day EMA. If we break above there, then it is possible that the market could go looking to reach the 1.12 handle. The 1.12 handle is where I would believe the trend has changed.

That being said, any rally at this point in time will more than likely show signs of exhaustion that we can jump all over, as it would simply be a continuation of the longer-term downtrend. Quite frankly, with the ECB being basically stuck with high inflation but slow growth, it is difficult to imagine a situation where the ECB can be as aggressive as the Federal Reserve.

Because of this, the market is one that I think if you take a little bit of time on the trade, you get nice shorting opportunities time and time again. Because of this, I may have to shift to a shorter time frame to place trades.

EUR/USD Price Forecast Video 19.04.22

For a look at all of today’s economic events, check out our economic calendar.