EUR/USD Price Forecast – Euro Gets a Boost

Euro vs US Dollar Technical Analysis

The Euro gapped higher to kick off the trading session on Monday, breaking above the 50-Day EMA. That being said, the market still has plenty of noise attached to it, so therefore you need to be cautious about thinking everything is changed. Just because the Ukrainian forces have pushed back the Russians, that will not change most of the problems that the Europeans are going to be facing this winter.

Quite frankly, this economy has to worry about the weather, not something most developed economies do. If it is a brutally cold winter in Europe, it will matter nothing as to whether or not the Russians can advance or not. In this sense, I think of this as a reflexive move at best.

Piercing the 50-Day EMA is a technical victory, but by the time the Americans woke up, we had already given back quite a bit of the gain. This tells me that the market more likely than not won’t have a lot of follow-through momentum. But frankly, it shouldn’t, as nothing has truly changed. I suspect that the Euro will hit parity again sometime later this week.

However, we always need to look at the opposite scenario. If we break above the 1.02 level, it’s very possible that the Euro could climb to the 1.03 level, which is another area where we have seen a lot of selling pressure. Where the Euro is concerned, for me it’s not necessarily a question of whether or not I am buying or selling, but what level I will be selling from. I suspect that will continue to be the case, as there’s just nothing good coming out of the EU.

EUR/USD Price Forecast Video for 13.09.22

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