Euro vs US Dollar Technical Analysis
The Euro has bounced a bit from the 1.05 level again, an area that has been rather important. Ultimately, the market continues to see a lot of support for the 1.05 level, and it is probably going to be very difficult to break through there. When you look at the historical charts, the area between 1.05 and 1.03 has been rather noisy in the past. Because of this, I would anticipate that we are not simply going to slice through the support, although we certainly could get through it.
Looking at this chart, we could bounce rather significantly from here, and still be in a relatively strong downtrend. The 50 Day EMA looks to be racing towards the 1.08 level, which is a large, round, psychologically significant figure, and of course an area that has been supported in the past. Based upon “market memory”, I would anticipate that there should be sellers in that area. Quite frankly, I would love to see a bounce so I can pick up “cheap US dollars.”
I do not really have a scenario in which I am willing to start buying the Euro, at least not at the moment. Things could change over the next several weeks, but right now I still have to believe that the US dollar will strengthen against the common currency because the European Central Bank has no path to tightening at the moment, while the Federal Reserve is hell-bent on doing so. That being said, the markets already know this, so we may have the occasional hiccup. Looking at this chart, I think it is only a matter of time before short-term charts give you an opportunity to get short of the Euro again.
EUR/USD Price Forecast Video 09.05.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/euro-bounces-same-support-level-140527339.html