The Euro Trades Below 1.08

Euro vs US Dollar Technical Analysis

The Euro has been trading below the 1.08 level over the last couple of days, and it certainly looks as if the market is going to continue to drop lower, perhaps even reaching down to the 1.06 handle. There is a lot of noise between these two areas, and I think it is going to be very choppy, to say the least. At this juncture, there is nothing on this chart that even remotely suggests that the market is ready to turn around, and at this point, the first barrier is going to be the 1.0933 level. That is an area where we have seen resistance previously, and if we were to break above that level, then the market could go looking to reach the 50 Day EMA.

At this point, I would suspect that any rally that happens will more likely than not be a selling opportunity at the first signs of exhaustion, and therefore it is likely that people will be looking for “cheap dollars” if they get the opportunity. All things being equal, this is a market that should stay in a downtrend, and therefore I do not have any interest in trying to get long anytime soon.

In fact, it is not until the market breaks above the 1.12 level that I would be convinced that the Euro could recover for the longer term. Until then, I look at any rally at this point with a significant amount of suspicion, and therefore will not try to jump on them anytime soon as the momentum clearly favors the greenback.

EUR/USD Price Forecast Video 20.04.22

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