Euro vs US Dollar Technical Analysis
The Euro has shown itself to be rather soft during trading on Monday, reaching the 1.10 level midday. By doing so, the market looks as if it is ready to continue struggling, and perhaps is going to break down even further. At that point, I would anticipate that the market is likely to go looking toward the 1.0850 level underneath, where we had bounced from previously. The market will more likely than not be very choppy, but I believe that the 50 Day EMA is being widely followed at the moment, and it does offer a certain amount of dynamic resistance.
That being said, the market has been in a downtrend for quite some time, and this is just a simple continuation of the overall pattern. As long as that is going to be the case, I do not see any reason to get overly excited one way or the other and believe that following the longer-term trend will continue to be the best possible trading setup.
It is worth noting that the 1.0850 level below is the top of a major consolidation area, and it could take quite a bit of effort to finally break down below it. If and when we do, that would obviously be a very good sign, but right now I do not know that we have the momentum. With the Germans seemingly willing to step away from Russian gas, that might be reason enough to expect a recession, which then could play into the hands of this downtrend as well. If yields in America continue to spike, that will also plan to this downtrend going forward. Either way, I do not have any interest in buying the market at the moment.
EUR/USD Technical Analysis Video 05.04.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/euro-continues-drift-lower-133554929.html