Forex Field-Guide for the Euro (AUGUST 2022)

Handy reference report for daily use when planning your Euro trades.

TECHNICAL ANALYSIS

Last year in 2021, the value of the Euro fell 6.80% as it moved from $1.22 to $1.14 which was in opposition to the trajectory which turned bearish in January when the 50 day moving average climbed above the 200 day. The momentum was bullish until October when it turned bearish as the value fell below both moving averages and has dropped lower ever since.

This year, the momentum remains bearish which is now in alignment with the trajectory which turned bearish in May. This indicates that the downside support area at $0.97 is being targeted which was previously tested twenty years in October 2002.

Trading Economics forecasts a less valuable Euro: $0.98 in Q3; $0.97 in Q4; $0.96 in Q1 (prev. 0.97).

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SENTIMENT ANALYSIS

RISING ENERGY COSTS NARRATIVE

What’s Happening? | The Consumer Price Index (CPI) has been climbing every month since December 2020 and Eurostat printed the latest report in August which showed 8.9 percent for the twelve months to July. This is far above the target rate of two percent.