Euro vs US Dollar Weekly Technical Analysis
The Euro has gone back and forth during the course of the trading week, as the 1.05 level continues to offer support. Ultimately, any rally at this point will look suspicious, especially as the trend has been so negative. Ultimately, the European Central Bank is stuck with a loose monetary policy, while the Federal Reserve is tightening. That should continue to favor the US dollar, but it is obvious that there is a significant amount of support underneath this area on longer-term charts. The area between the 1.05 level and the 1.03 level is more than likely going to be very difficult to breakthrough, but I think we very well could.
If we break above the top of the candlestick for the week, then it is likely that we will see some type of exhaustion that we can get involved in. The 1.08 level was previous support, so now as far as market memory is concerned it should offer resistance. Given enough time, I think that we will continue to see a lot of noisy behavior, but we are a little oversold so a bounce should be expected, but then again it should be a nice shorting opportunity so you can pick up “cheap US dollars.”
If we do break straight down, then it is possible that we could go looking to that 1.03 level, but I think it will be more or less a grind than anything else. This is of course unless we see some type of major fundamental shock to the system.
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-sees-consolidation-week-144122872.html