Euro vs US Dollar Technical Analysis
The Euro has fallen during the trading session on Monday to show signs of weakness yet again. The 1.07 level underneath is a short-term barrier in the sense that it is a large, round, psychologically significant figure, but at this point, I do not think it is very likely that we see that hold for any significant amount of time. Any rally at this point in time will more than likely be a selling opportunity with the 1.08 level now offering quite a bit of resistance.
Underneath, the 1.06 level is my target, because this is the bottom of the consolidation area that we previously had tested. Ultimately, I think this market will find reasons to fall, if for no other reason than the world has so many different negative connotations to it at the moment. Ultimately, any rally at this point will be a nice selling opportunity, as we have been in such a massive downtrend. If we were to break down below the 1.06 handle, then it is likely that we go looking to reach the 1.05 level, mainly due to the fact that it is a large, round, psychologically significant figure.
The size of the candlestick does suggest that there will be some follow-through, and quite frankly, it is more likely than not that we will continue to see downward pressure. With the Federal Reserve being so hawkish at the moment, it does make sense that we continue to see more of the same. In fact, it is not until the Federal Reserve changes its tune that this pair has a significant chance of turning around for a longer-term move.
EUR/USD Price Forecast Video 25.04.22
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