Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during the Wednesday session but found the 1.0850 level to be a bit too much to overcome. Because of this, the market has struggled to recover, and now it looks as if it is going to go looking to reach the 1.06 level, although I would point out there is a lot of noise between here and there. In this scenario, I think of it as more of a “grind lower” than anything else. This market continues to be very noisy and choppy, but I do think it is probably only a matter of time before we do reach that lower level.
If we were to turn around and rally from here, I suspect that the 1.0933 area should be resistance, as we have struggled there previously. Furthermore, the 50 Day EMA sits in that same area as well, so it makes a certain amount of sense that we would see that as a bit of a barrier as well. This is most certainly a very negative-looking chart, and we are on the precipice of breaking down. This will be very interesting to follow, because if we see this market fall, then it is very likely that we will see the US dollar strengthening against almost everything.
As long as we have this massive interest rate differential between the United States and Germany, I just do not see how the Euro does well against the greenback. Furthermore, the inflation numbers in the European Union along with low growth is like an anchor around the neck of the Euro itself. The Federal Reserve looks very hawkish, so that will continue to favor the US dollar as well.
EUR/USD Price Forecast Video 14.04.22
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