Euro vs US Dollar Technical Analysis
The Euro has rallied significantly during the course of the trading session on Wednesday as the 1.08 level continues to offer plenty of support. The area between 1.08 and 1.06 is a major barrier, and it has a lot of noise attached to it. Because of this, the market will more likely than not grind lower than break down significantly. The 1.06 level being broken to the downside would be a major breakdown of the Euro in general.
If we were to break higher from here, I think there is resistance at the 1.0933 level. That is an area where we have seen a lot of selling pressure recently, and if we were to break above there, then we are not necessarily out of the danger yet, because the 50 Day EMA is above there. All things being equal, I think it is more likely than not going to be a bit of a “fade the rallies” type of situation. In fact, I am not interested in buying the Euro until we break above the 1.12 handle.
Ultimately, this is a market that I think will continue to see a lot of volatility, and perhaps favor the US dollar as the interest rates in the United States are much stronger than in the European Union. Furthermore, the European Central Bank has almost no chance of tightening monetary policy, so at this point in time, it is worth looking for signs of exhaustion to jump all over. Unless the Federal Reserve changes its overall attitude, it is difficult to imagine a situation where we would see the Euro rallied for any significant amount.
EUR/USD Price Forecast Video 21.04.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/euro-continues-bids-1-08-133821535.html