Yahoo Finanza Euro Crashes Into Support for the Week
Euro vs US Dollar Weekly Technical Analysis
The Euro has broken down significantly during the trading week, reaching the 1.0850 level at the time of writing. If we can break down below the recent low from about a month ago, it could unleash a flood of selling going forward. The interest rate differential between the bond markets of the European Union and the United States will continue to favor a downward pressure, but we are getting to a point that is a bit oversold.
The size of the candlestick is also impressive, so it is worth paying attention to that as well. It shows real conviction, and it is likely that will suggest a bit of follow-through. Any rally at this point in time will have to deal with a massive amount of selling pressure, which extends all the way to the 1.12 handle. The 1.12 handle is an area where we had tried to break through during the previous candle on the weekly chart but then gave back those gains to show signs of exhaustion.
The market continues to be one that cannot find a reason to get long, and beyond the interest rate differential, there are a lot of other reasons to think that the Euro is going to struggle. After all, the European Union is almost certainly going to go into a recession, as the energy issues alone are going to cause problems. Furthermore, we have seen such things as the Germans had to bring down the GDP estimates going forward, and things simply do not look good. There are geopolitical risks in France with Marine Le Pen threatening and upset in the French presidential elections, and of course, there is a war in Ukraine. At this point, it is difficult to imagine this market reversing easily.
EUR/USD Price Forecast Video 11.04.22
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This article was originally posted on FX Empire
