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EUR/USD Price Forecast – Euro Struggles to Break Above the 50 Day EMA

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·2 min read
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Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Thursday but continues to struggle with the idea of overcoming the 50 Day EMA. At this point, it looks like we are running down on momentum, which makes quite a bit of sense considering that the Federal Reserve is going to be much more hawkish than the ECB going forward.

Furthermore, we have to keep in mind that the market has quite a bit of momentum and downtrends don’t simply end one day out of the blue. We need some type of catalyst to make that happen. The most likely of catalysts could be if something changes at the Federal Reserve. That is not happening in the near term, so more likely than not, we have a scenario where we fade rallies going forward.

The 1.08 level above is a significant barrier that I think a lot of people will pay close attention to, as it is previous support and of course a large, round, psychologically significant figure. With that being the case, I believe it is only a matter of time before we see sellers come in and jump all over the Euro. There are a lot of concerns in the European Union right now, and I don’t see that changing. Although the ECB has suggested that they were going to raise interest rates by 25 basis points, that is much less aggressive than their American counterparts. On the downside, I believe that the 1.05 level will be the target over the next several weeks, as we continue to grind lower over the longer term.

EUR/USD Price Forecast Video 27.05.22

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This article was originally posted on FX Empire

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