EUR/USD Price Forecast – Euro Continues to Threaten a Major Breakdown

Euro vs US Dollar Technical Analysis

The Euro initially tried to rally a bit during the trading session on Thursday but it gave back gains to continue to threaten the lows again. Ultimately, this is a market that I think will continue to look for support, but it is certainly becoming more and more aggressive to the downside. Eventually, I anticipate that this market breaks through the little bit of support it has been finding and look to reach the 1.02 level. The 1.02 level then opens up the possibility of the parity level, which is an area that will attract a lot of headline attention.

The ECB continues to struggle with an economy that has to worry about energy and inflation at the same time, while the Federal Reserve is focusing solely on inflation. As long as it’s going to be the case, the Federal Reserve will be much more aggressive with its monetary policy than the ECB, thereby driving this pair lower. Furthermore, the Euro has been miserable for some time, so there’s no real reason to think that we are going to see anything different apart from the occasional short-term rally.

Ultimately, I think this market does get to the parity level sometime later this summer, but that does not necessarily mean that it is going to be easy to get there. I think we will continue to have very choppy trading conditions, and therefore think we continue to see a market that is noisy and difficult but most certainly favoring the downside going forward. In fact, it’s not until we break above the 1.08 level that I would think differently.

EUR/USD Price Forecast Video 01.07.22

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE:

• Exclusive-Meta girds for ‘fierce’ headwinds, slower growth in second half -memo

• Bulgaria urges Russia to withdraw diplomatic ultimatum with embassy closure threat

• S&P 500 wobbles to the end of its worst first-half since 1970

• Russia hauls in ambassador over ‘offensive’ UK comments on nuclear weapons

• Siemens writedown for Siemens Energy to hit Q3 net profit by 2.8 billion euros

• Six killed in Sudan as protesters rally on uprising anniversary