Yahoo Finance EUR/USD Price Forecast – The Euro Breaks Higher
Euro vs US Dollar Technical Analysis
The Euro has rallied a bit during the trading session on Monday to break above the 1.06 level. This is an area that will attract a certain amount of attention, but at this point, I believe that the Euro is probably living on “borrowed time.” After all, even though Christine Lagarde suggested that the European Central Bank was open to a 25 basis point rate hike had people buying the Euro. That being said, there is still much less hawkish than the Federal Reserve, and of course, there is a serious issue when it comes to risk appetite out there. In other words, this is a market that I think you should be fading, not buying.
If we break below the 1.06 level, I think at that point the Euro will continue to fall, testing the 1.05 level. Keep in mind this pair tends to move very slowly, so I am not necessarily looking for a massive breakdown, just that I think we will continue the overall negative pressure. On the upside, you can make an argument for the 1.08 level being a massive resistance barrier, so I would short this market in that area as well.
I have no interest in buying the Euro, at least not anytime soon, unless of course, somebody changes the overall attitude coming out of the Federal Reserve. I think volatility and choppy behavior is something that you will have to expect, but longer-term we are still mostly in a downtrend, and I just do not see how that changes for the longer-term.
EUR/USD Price Forecast Video 24.05.22
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This article was originally posted on FX Empire
