Euro Pulls Back at 50 Day EMA

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Wednesday to reach the 50 Day EMA before pulling back a bit. Ultimately, we are reaching an area of extreme resistance it will be interesting to see whether or not we can continue to go higher. I believe that this resistance extends to the 1.12 handle, which is an area that if we can break above, would be a very bullish turn of events. However, we are in a strong downtrend, and I do not see that changing anytime soon.

The US dollar will continue to attract certain inflows due to a safety bid, and whether or not we still need that will be the only question that people going forward. The market breaking down below the lows of the Wednesday session could signal that we are going much lower because quite frankly most of this bid for the Euro was based upon rumors coming out of the Ukrainian peace talks. The overall downtrend is still very much intact and will be until we break well above the 200 Day EMA. That being said, if we broke above the 1.12 handle, then it would be the beginning of something much bigger.

Underneath the current trading, the 1.0850 level could be a target, but we need to see some type of “risk-off” type of move. Expect a lot of choppy behavior regardless of what happens next, as we are at a major inflection point and will have to figure out where we are going longer-term rather soon, I suspect. In the meantime, we will probably see a lot of Brownian motion.

EUR/USD Price Forecast Video 31.03.22

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