Euro Continues to Test Support

Euro vs US Dollar Technical Analysis

The Euro has fallen a bit during the trading session on Friday to pierce the 1.08 level. The 1.08 level has been significant support in the past, and therefore it is not a huge surprise that we have bounced from there. Furthermore, it was Good Friday, so that means that North America was essentially shut down. Because of this, I would not read too much into the candlestick. That being said, the fact that we found support here simply suggests that we could get a little bit of a bounce on Monday. Any type of bounce would more than likely show signs of exhaustion that we can take advantage of.

If we do break down below the 1.08 level, it is possible that we could grind to the 1.06 level. That being said, it is very noisy underneath, so therefore it will take a long time to get to the 1.06 level unless of course something drastic happens. At this point, it is a simple grind lower due to the fact that the Europeans have to worry about energy security, and at the same time have a weakening economy. Furthermore, there is inflation to deal with, so the European Central Bank is in a real mess.

On the upside, the 1.0933 level offers short-term resistance, but even if we break above there, I do not think that it is time to start buying the Euro. The 50 Day EMA is drifting lower and heading toward the 1.1050 level. Looking at this chart, the market has been in a strong downtrend, and it does not look like that is changing anytime soon. With this, I am looking for an opportunity to short again.

EUR/USD Price Forecast Video 18.04.22

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