- The euro continues to see a lot of upward pressure on Tuesday, but at this point in time, the market continues to see a lot of selling pressure above the 1.05 level.
- This is an area that we would see a lot of trouble at, which has been the case so far.
- Ultimately, the market continues to see a lot of questions asked about the US dollar, and of course the euro, as the European Union continues to struggle with the overall economic conditions, and of course the war in Ukraine.
The technical analysis for the pair EUR/USD continues to look sideways, but short term bullish. The area that we are testing has been important more than once, as the barrier could very well stretch all the way to the 1.06 level above. The 200 Day EMA is roughly in that area as well, as this is a situation that would cause a lot of attention in the markets and the financial websites.
On the other hand, if the market were to break below the 50 Day EMA, then the market could drop to the 1.03 level, possibility even the 1.02 level. This is an area that will continue to be an area where a lot of people are watching, as a break below there would be a sign that the euro could very well drop to the parity level.
In that situation, the US dollar would probably be getting stronger against almost everything as far as the currencies are concerned. This would be a market wide phenomenon, and you would obviously be aware of this.
On the other hand, if we were to break above that crucial 1.06 level, and the 200 Day EMA, I would be looking at the EUR/USD pair travelling all the way to the 1.10 level, an area that has been important more than once as well. Ultiamtely, I think this isn’t likely, but it is a potential possibility if things line up correctly.
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