Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during the trading session on Tuesday but has run into a lot of trouble with a 1.06 level yet again. This is an area that has been consistently important, as we continue to fight back and forth between higher interest rates in the United States, and the idea that the ECB may be able to tighten monetary policy, albeit at a much slower rate than the Americans.
Regardless, we are in a downtrend, and that’s the most important thing to pay attention to. The 50 Day EMA sits just above and is sloping lower, so it’s very likely that we will continue to see this market grind lower. The 1.04 level underneath is where we had seen a bit of a double bottom, and therefore I think it’s likely that will be difficult to break through. However, if and when we do, then it opens up the possibility of the Euro dropping down to 1.02 and the parity level eventually. Parity is a real possibility sometime this summer and would not surprise me in the slightest.
If we do turn around and take off to the upside, the 1.08 level is more likely than not going to be a major barrier, and it will take a lot of effort to get above there. If we do, that would be a strong sign as it would confirm a “W pattern” I don’t expect to see that happen, but it is worth noting that it is a possibility and therefore you have to prepare for that potential scenario, however unlikely it may be.
EUR/USD Price Forecast Video 29.06.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire