Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during the course of the trading session on Thursday before giving up most of the gains rather quickly. That being said, the interest rate differential between the European Union and the United States will continue to be a major influence on what happens next. Keep in mind that the 1.08 level underneath has been pierced slightly, so be interesting to see if we can break down below there and go lower.
If we turn around and break above the 1.0933 level, we could possibly go looking to the 50 Day EMA above. That being said, the market breaking higher does more likely than not offer an opportunity to pick up “cheap dollars”, and therefore could be a nice trading opportunity.
If we were to break down below the 1.08 handle, then it is possible that we could go all the way down to the 1.06 level, but it will be very slow more likely than not due to the fact that there is a lot of choppy behavior historically and that range. Because of this, I am going to be patient with a move to the downside, but it is going to take some time.
The European Union is stuck in a bit of a pickle at the moment, due to the fact that there is a lot of inflation, but a lack of growth at the same time. Furthermore, the situation in Ukraine and the problems with the energy coming from Russia will continue to work against all things European as well. It is almost impossible at this point to get long of this market, but if we were to turn around a break above the 1.12 handle I would consider it.
EUR/USD Price Forecast Video 15.04.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/euro-gives-early-gains-133831559.html