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EUR/USD Price Forecast – The Euro Continues to Sell Off On Rallies

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Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Friday but also gave back quite a bit of the gain to show lackluster performance. It looks as if the Euro is comfortable sitting on top of the 1.05 level, but if we were to break down below it, that could kick off yet another leg lower.

It’s interesting to see that the market has formed a little bit of a “double bottom” near the 1.04 level. If we were to break down below that level, that would obviously be a breach of significant support and open up the possibility of the Euro dropping down to the 1.02 level, and then eventually the parity level. I do anticipate that this will happen unless of course something drastically changes that one of the central banks. While the ECB has suggested that maybe they will do something down the road, they are talking about a couple of 25 basis point rate hikes, in comparison to the United States which is already on the hook for at least 100 basis points over the next couple of meetings.

With this being the case, the US dollar will continue to strengthen, and then by extension, the Euro will fall as it is considered to be the “anti-US dollar.” The 50 Day EMA sits just below the 1.07 level and is granting to the downside. I do believe that the 50 Day EMA will be challenged, be it at higher levels, or closer to the 1.06 level. After all, this pair does tend to chop sideways for long periods of time, so while I do anticipate more sideways action, I expect so with the downward tilt.

EUR/USD Price Forecast Video 27.06.22

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This article was originally posted on FX Empire

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