Euro vs US Dollar Technical Analysis
The Euro has broken down below the 1.05 level during trading on Thursday, an area that quite frankly I thought would hold a little bit better than it did. Because of this, the market is likely to continue seeing a lot of negativity, and at this point, I think that any bounce that occurs will more likely than not offer a selling opportunity. In fact, that is exactly how I am going to approach his market until we clear the 1.08 level at the very least. The 50 Day EMA is racing towards that level, so I do think that it probably continues to offer a bit of dynamic resistance if and when we finally get there.
Underneath, the Euro could find itself racing toward parity, but I do not think we get there easily. This pair typically is very choppy, and then will have a sudden burst as we have just seen. Because of this, I would expect some type of bounce but at the first signs of exhaustion I would also anticipate that a lot of money comes flying into the market to take advantage of “cheap US dollars.”
All of this being said, you can clearly see that the market has been selling off so drastically that a bounce would make quite a bit of sense because quite frankly markets cannot go in the same direction forever. Because of this, I do think that we will more than likely try to defend the 1.05 level. On the upside, we would more likely than not find resistance at the 1.07 level, and multiple other places above there. As long as the interest rate differential continues to favor of America, we should continue lower.
EUR/USD Price Forecast Video 29.04.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/euro-breaks-below-major-support-132958175.html