Euro vs US Dollar Technical Analysis
The Euro initially tried to rally a bit during the session on Monday, as we continue to see a lot of volatility. That being said, the market certainly looks as if it’s going to continue to threaten the idea of breaking down below parity. However, the ECB is likely to do a little bit of an interest rate hike, but I think that’s going to only be a bump along the road when taken in comparison to the Federal Reserve. Because of this, the market will continue to be very noisy, but I think it’s only a matter of time before we see selling pressure again.
The parity level being broken to the downside again will more likely than not kick off a lot of selling pressure, opening up the possibility of a move down to the 0.98 level. On the other hand, we could break above the 1.02 level, and then go looking to the 1.04 level after that. That’s an area where I think there is much more resistance than the 1.02 level. Regardless, I think it’s only a matter of time before the sellers come in and take over yet again.
Looking for cheap US dollars will continue to be the best way to trade this market unless of course the Federal Reserve suddenly changes its attitude. I do not think that’s going to be the case, but it is worth noting that the interest rates in America have been drifting a little bit lower, thereby not putting too much pressure at the moment, but this is a turnaround this market will drop like a stone.
EUR/USD Price Forecast Video for 19.07.22
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This article was originally posted on FX Empire