In addition to all this, we also have to worry about whether a global slowdown will happen or not, and if it does happen, many people will run to the US dollar for safety. EUR/USD pulled back during Thursday’s trading as the 200-day EMA came back into the picture and the 1.0350 level is an area that many are also watching. The market is more likely to be in a situation where we are debating whether the euro can maintain the momentum seen so far. It is clear to me that we are overbought at this point, so at least I suspect we should see a sideways trade or pullback to clear the scum to find value for those looking to buy the Euros. Advertisement SEE FOR YOURSELF WHY EUR/USD IS THE MOST TRADABLE PAIR TRADE EUR/USD NOW image The 1.0350 area is basically where the support used to be, so it makes a lot of sense that the area could provide some ” market memory” and hence the resistance. I think a reversal is more likely than not at this point, but I also have to question whether the ECB will be able to raise rates as quickly as everyone thought. In fact, there was a leak today that suggested the ECB might only raise interest rates by 50 basis points at its next meeting instead of the expected 75 basis points. If so, the euro will not be as attractive as the US dollar, especially if the Fed continues to be aggressive with its tightening policy. The dollar is likely to strengthen In addition to all this, we also have to worry about whether or not there will be a global slowdown, and if it actually happens, many people will run to the US dollar for safety. Looking at the chart, it is quite logical that we would see a pullback, if for no other reason than the fact that we have advanced. However, if we break above the 1.05 level, it can bring new purchases and open a trade to the 1.08 level. In this scenario, you can also significantly recover from the green back. If there are concerns, there is a chance that the US dollar will continue to strengthen over time.