Euro vs US Dollar Weekly Technical Analysis
The Euro has gone back and forth during the course of the weekends we continue to see a lot of volatility. The 1.08 level looks to offer quite a bit of resistance, so I think it’s probably only a matter of time before sellers come back in if we get to that area. From a longer-term standpoint, we are most certainly in a downtrend so it’s difficult to imagine buying this pair, but if we were to blow through the inverted hammer that sits just above the 1.08 level, I would have to give it serious thought.
Traders are starting to think that the European Central Bank may have to get a bit more hawkish, but at the end of the day a lot of it’s going to come down to European growth, or perhaps the lack of. At this point, the Federal Reserve continues to be the hawkish central bank that everybody’s paying attention to, so I think there is still plenty of downward pressure. Signs of exhaustion will be jumped upon, although you may have to drill down to the daily or even the four-hour chart to get that entry point. Remember, the Euro tends to be very choppy and volatile, so trading longer-term charts can be a bit of a hassle at times.
Nonetheless, I think we revisit the lows again, given enough time especially if the yields in America continue to rise the way they have. I like the idea of fading rallies, but again I would have to look toward short-term charts in order to place those trades. If we do break to the upside, then the 1.12 level could be your target.
EUR/USD Price Forecast Video 06.06.22
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This article was originally posted on FX Empire
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