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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 gave back gains rather quickly. By doing so, it looks as if the market is going to continue to struggle. At this point in time, I would anticipate that the Euro is possibly going to enter some type of freefall. Breaking below the candlestick from the previous session, could open up a move down to the 1.03 level, maybe even down the parity over the longer term. It is going to take quite some time to get down there, but eventually, we could do just that.

Rallies at this point in time are obvious selling opportunities, and you need to look for rallies to take advantage of “cheap US dollars.” I do think that it is only a matter of time before we would see this market bounce, but as long as you see the European Union struggling to fix its energy issue, as well as the horrible economic figures. The ECB will have no real interest in trying to tighten monetary policy while the Federal Reserve is almost certainly going to do that. Because of this, it is a one-way trade and I think that until something fundamentally changes, the Euro has no real chance of turning the rally around.

I know a lot of technical traders will look at this and go “The Euro seems cheap.” The problem about currencies to get cheap is that sometimes they get much cheaper. That more likely than not will be the case until the Fed steps back.

EUR/USD Price Forecast Video 16.05.22

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

This article was originally posted on FX Empire

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