Hello guys. We could see that the EUR has shown extremely high bearish pressure in the previous week. EUR bleeds. And this is not only the case with the USD (which is the main rival to the EUR) but with a basket of other currencies. Unfortunately, this is a consequence of the war that is happening in Europe, and according to various economic sources, the impact of the war on the European economy will be huge and all this is not in favor of the euro. Many economists do not rule out the possibility that the ECB will intervene in Forex to stabilize the currency, but this may or may not happen.
However, from a technical point of view, I don't have much to say. I think we could only wait for one scenario, and that is that we will get a decent pullback, preferably up to 0.382 fib levels, and that would be a good opportunity to enter a short position. At the moment, the market is in theoversold area (daily chart, look at the RSI) and with that in mind, it is reasonable to expect a pullback. But when we have geopolitics in the center of attention, everything can be and nothing has to be.
I would also like to note that many experts predict parity for EUR/USD and this seems reasonable to expect, especially when we look at the economic situation and the differences in the monetary policy of the ECB and the FED.
However, from a technical point of view, I don't have much to say. I think we could only wait for one scenario, and that is that we will get a decent pullback, preferably up to 0.382 fib levels, and that would be a good opportunity to enter a short position. At the moment, the market is in theoversold area (daily chart, look at the RSI) and with that in mind, it is reasonable to expect a pullback. But when we have geopolitics in the center of attention, everything can be and nothing has to be.
I would also like to note that many experts predict parity for EUR/USD and this seems reasonable to expect, especially when we look at the economic situation and the differences in the monetary policy of the ECB and the FED.