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EUR/USD Price Forecast – Euro Gives Up Early Gains

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·2 min read
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Euro vs US Dollar Technical Analysis

The Euro initially tried to rally during the trading session on Friday but has given back the gains initially enjoyed. The 50 Day EMA has offered dynamic resistance multiple times in the past, so it does suggest that it would again. That being said, if we were to break down below the bottom of the candlestick for the trading session on Friday, it could open up fresh selling. At that point, I would anticipate that the Euro could very well start selling off again to reach the 1.05 level.

While we have seen quite a rally, the reality is that the Euro is in a downtrend for multiple reasons, not the least of which would be the interest rate differential between the two economies. Furthermore, the European economy has multiple issues that should continue to keep the currency fairly weak over the longer term.

Just above, we have the 1.08 level offering massive resistance, so I was looking for a reason to start shorting. I may have found it, but I also recognize that the market will continue to be very noisy, so you need to keep in mind that a lot of players out there are starting to suggest that perhaps the Federal Reserve will not be able to tighten monetary policy as much as they once thought. In other words, it’s complete confusion and chaos as per usual, as the Federal Reserve continues to cause headaches for traders around the world. The simplest way to profit is to follow the longer-term trend, which certainly looks bearish at the moment, and would have to break above at least 1.09 for me to change my opinion.

EUR/USD Price Forecast Video 30.05.22

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This article was originally posted on FX Empire

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