Euro vs US Dollar Weekly Technical Analysis
The Euro has gone back and forth during the trading week, and showed a significant amount of support near the 0.95 level. Ultimately, the market is likely to continue seeing a lot of noise, as we had gotten a bit oversold. The parity level above should offer a significant amount of resistance, and for what it is worth, the 50-Day EMA on the daily chart of course is a significant barrier.
All things being equal, this is a market that I think continues to see a lot of volatility, but at the end of the day, this is a market that is still very negative, so this is not going to be a situation where I’d be a buyer, at least not until something changes from a stronger standpoint. For example, the market will almost certainly have some type of relief rally again, but the European Union still struggle overall, and the fact that they are now going to have to worry even more about natural gas, I just don’t see how the economy takes off.
On the other side of the Atlantic Ocean, you have the Federal Reserve which continues to tighten policy. Idea that the Euro suddenly turns round is laughable, and quite frankly I think we have much further to go. The European Union is in a significant crisis, with industries on the continent starting to close due to energy concerns. With this, I believe that we continue to see more of the same, more of a “fade the rally” type of situation.
EUR/USD Price Forecast Video 03.10.22
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