Yahoo Finance EUR/USD Price Forecast – Euro Pulls Back From 50 day EMA
Euro vs US Dollar Technical Analysis
The Euro has rallied a bit during the trading session on Tuesday but has struggled with the 50 day EMA. That being the case, the market looks as if it is going to continue to be very noisy, and that the uptrend is short-lived at best. I suspect that the longer-term downtrend will continue to play a major part in where we go next, as the fundamentals lined up for a much weaker common currency. After all, the Federal Reserve is still extraordinarily hawkish, while the ECB can only make a few symbolic moves.
Part of the reason that we have seen the Euro bounce a bit has been that Christine Lagarde stated that the European Central Bank may raise interest rates by 25 basis points. Quite frankly, that’s a symbolic gesture at best, as the Federal Reserve is likely to raise interest rates by 200 basis points at the very least. With that in mind, does make sense that we continue to see sellers jump into this market and jump toward the US dollar.
To the upside, we have to pay attention to the 1.08 level, as it is a previous area of support, and it should now be resistance on the way back up. Ultimately, this is a market that is still in a strong downtrend, so I think at this point in time it makes sense to stick with that overall trend as there is so much momentum over the last couple of months that is difficult to imagine anything else happening.
EUR/USD Price Forecast Video 25.05.22
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This article was originally posted on FX Empire
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