Euro vs US Dollar Technical Analysis
The Euro has fallen a bit during the trading session on Tuesday to reach the 1.0850 level before bouncing a bit. At this point, the market looks as if it is trying to form some type of double bottom, but I think this is short-term only. Any bounce at this point should be thought of as an opportunity to start shorting, especially as the interest rate differential between the Euro and the US dollar continues to widen. With the European Union and so much financial trouble, it is hard to imagine that Euro suddenly takes off to the upside.
I believe this is a lot like the British pound, where if we get some type of bounce, is going to be a nice opportunity to short it again, as we have been in such a strong downtrend. From a fundamental analysis standpoint, there is no reason whatsoever to go long in this market, but if we were to take out above the 1.12 handle, then it could start to change the overall trend of the market, but quite frankly we would need to see either the European Central Bank or the Federal Reserve change its attitude overall.
In general, this is a market that I think if you are patient enough, you get an opportunity to pick up “cheap US dollars” on any bounce that shows signs of exhaustion. The 1.12 level above is going to be like a ceiling, and therefore if we were to break above there, I think there would be a lot of short covering happening in this market, perhaps even leading to a longer-term trend.
EUR/USD Price Forecast Video 13.04.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Source: https://finance.yahoo.com/news/euro-bounces-ever-slightly-132940157.html