EUR/USD Price Forecast — Euro Gives Up An Early Gain

Euro vs US Dollar Technical Analysis

The Euro has tried to break above the parity level, but could not hang on to the gain. This is not a huge surprise, as the outlook for the European economy looks concerning. After all, the lack of energy this winter is going to be a major issue, and it seems as if the market is “whistling past the graveyard” at the moment. It’s not that they are not pushing the Euro lower, it’s just that other markets such as the DAX and the CAC are certainly not showing the desperation that is about to be felt.

Furthermore, if the Federal Reserve does in fact have to continue to be aggressive with its monetary policy, it should continue to make the US dollar stronger. True, the idea of “parity” is a bit odd for a lot of people, but at the end of the day, it’s a bit of a stretch to think that we cannot go lower. In fact, I still have a target of 0.98, but it may take a while to get there. After all, we just plunged rather hard, and have just started to consolidate. If you look at the EUR/USD pair, it has a long history of impulsive moves followed by a lot of sideways and nonsensical movements.

Regardless, I think that it is only a matter of time before any rally gets faded, part of what we have seen during the day on Thursday. The 50-day EMA is near the 1.0250 level, which of course is an area where we have seen a bit of resistance previously, so ultimately this is a market that we continue to look for “cheap US dollars.”

EUR/USD Price Forecast Video for 26.08.22

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