Euro vs US Dollar Technical Analysis
The Euro has fallen again during the trading session on Monday as we continue to see a lot of risk appetite destroyed. At this point, the US dollar continues to be the favored currency of traders around the world, as interest rates on the 10-year note have just crossed the 3.25% threshold. This makes the US dollar much more attractive, and therefore it makes quite a bit of sense that we will continue to see this trend play out.
Rallies at this point are selling opportunities from everything I can see, and I will take advantage of them at the first signs of exhaustion. I do not like the idea of buying the Euro under any circumstance at this point. I look at rallies as an opportunity to “buy cheap US dollars.” The 50 Day EMA is at the 1.07 level and is dipping lower. I think that offers quite a bit of negativity. We would have to break above there and then eventually the 1.09 level to change the trend, something that I just don’t see happening anytime soon.
The Euro is likely to test the 1.0350 level where we had bounced from previously, and then eventually break through it. Given enough time, I believe it is only a matter of time before we reach parity, but that might be late this summer unless, of course, we get some type of panic. Having said that, panic is a real possibility at this point as well. Typically, this pair does not move very quickly, but we have seen a couple of vicious selloffs in the last few months, which is a bit out of character, perhaps telling you something.
EUR/USD Price Forecast Video 14.06.22
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This article was originally posted on FX Empire