The euro is still very popular among the countries that use it because of its role in easing European trade. So due to the current situations, will EUR USD go up or down and whether Euro is expected to rise or fail in 2022. If you do not know yet, let’s take a look at the article below.
Will EUR USD go up or down?
By checking today 28 Oct, 2022, EUR/USD's intraday bias remains neutral for now. The advance from 0.9534 is still expected to continue as long as the 4-hour 55 EMA (now at 0.9898). A move above 1.0092 would resume the rally from the 38.2% retracement level of 0.9534 to 1.1494 to 0.9534 at 1.0283. However, a sustained trade below the 4-hour 55 EMA will turn down again to the 0.9534/9630 support area.
Overall, the medium-term bottom of 0.9534 is forming, and the daily MACD is bullish and converging. While it is too early to say a trend reversal, a firm break above 0.9998 would open a strong rally to the 55-week SMA (currently 1.0630), even with a corrective advance. This will be the most favoured case as long as the 55-day EMA (now at 0.9937) holds.
Is the euro expected to rise or fall in 2022?
EUR/USD has been steadily lower throughout the year. It opened 2022 at $1.1370 before rising to $1.1495 in early February before falling to a low of $1.0350 on May 13 levels last seen in January 2017. From here, the pair attempted a rebound, rising to $1.0650 in early June before falling again and breaking EUR/USD to a 20-year low on July 13, 2022.
By August 11, the pair rallied to $1.036, but this increase will be short-lived. The pair fell sharply within a week, breaking parity again on August 22, 2022. The euro recently dipped below the 99-cent mark, hitting a 20-year low of $0.9881 on Sept. 5, as Russia halted indefinitely the main gas pipeline to Europe.
The pair then started a five-day rally driven by a 75 basis point (bp) rate hike by the European Central Bank, peaking at $1.01977 on September 12, before falling below parity again, reaching a level on September 27 The year-to-date low is $0.9596. EUR/USD is again above par at $1.0023 as of October 26, 2022.
Slowing growth and inflation
The euro has been falling steadily in recent months as inflation has risen to record highs and growth has slowed amid growing concerns about the health of the euro zone economy. Recent macro data show that the euro zone economy is underperforming.
Rampant inflation and rising energy and borrowing costs are the main reasons for the euro zone's economic weakness. Inflation was already high at the start of the year due to Covid-19 supply chain disruptions and a mismatch between supply and demand as countries lifted lockdowns. Since then, food, fuel and energy prices have soared due to Russia's invasion of Ukraine in February and Western sanctions on Moscow.
Euro zone inflation, measured by consumer prices, rose 10% year-on-year in September, up from 9.1% in August and a record high. Energy prices have been the main factor behind rising inflation.
I hope now you will know about EUR USD will go up or down and whether EURO is expected to rise or fall in 2022. Politics is also important for the euro. The euro could fall if opponents of the euro gain power.
