According to our wave analysis, EURUSD seems to be in a long-term downtrend.

The downtrend began in 2008, when the EUR/USD reached its all-time high of 1.6038.

Since then, the price of EURUSD has declined by 40%, reaching its lowest level of 0.9535 in September 2022.

EURUSD Weekly Resistance And Support

• Resistance: 1.10000 , 1.22500 , 1.40000
• Support: 1.05000 , 1.00000 , 0.95000

Note: As the long-term downtrend has come to an end, the EURUSD is likely to face strong resistance at the levels mentioned above. The Euro/Dollar may find support at these levels, but they could be breached if economic and political news turns negative.

EUR/USD On the weekly time frame

On the weekly timeframe, it seems that EURUSD has completed wave C of wave Z of wave B within a larger downtrend.

With the indication that wave Z has completed 3 waves, this means that EURUSD may have reached its bottom.

We can expect EURUSD to be at the beginning of a long-term uptrend.

EWM experts predict that the uptrend will extend to at least 1.6038, representing a 32% increase from the current price.

• News and events that could support this scenario include:
  • Decline in US inflation.
  • Improvement in the European economy.
  • Resolution of the war in Ukraine.

This scenario above is based on the assumption that inflation in the United States will decline, allowing the European Central Bank to raise interest rates more quickly.

This could lead to the euro rising against the US dollar.

In addition, an improvement in the European economy could also contribute to a rise in the euro.

The eurozone has strong growth potential, and the economic situation in the region could improve with the resolution of the war in Ukraine.

• EURUSD will be affected by economic and political news in the short term.
  • If the news is negative, the pair is likely to continue declining.
  • If the news is positive, the pair is likely to rise.