EUR/USD Forecast – Euro Attempts to Recover on Monday

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EUR/USD Forecast Video for 16.05.23

Euro vs US Dollar Technical Analysis

The EUR has rallied a bit during the trading session on Monday, as we continue to see a lot of volatility in the Forex markets. That being said, I would not get overly excited one way or the other as it looks like we are going to continue to see a lot of hesitation by both buyers and sellers. That being said, the market is sitting underneath the 50-Day EMA and it looks like we are going to continue to see a lot of questions when it comes to whether or not the global economy is going to be strong enough to support risk appetite, or if we will see traders running toward the US dollar yet again. Ultimately, I think this is a situation where you continue to see a lot of choppy behavior, but it certainly looks as if the sellers have come back into the picture to cause major issues.

If the market were to break down below the lows of the Friday session, then it opens up the possibility of a move down to the 200-Day EMA, which sits just below the 1.07 level. With that being said, the market is likely to continue to be a lot of choppy volatility, and therefore I think you would not be likely to hang onto trades for too long of a time, due to the fact that the market seems to be very erratic and are willing to determine whether or not they are going to be willing to take significant risk appetite, or if they are going to continue to be very skittish.

If the market were to break back above the 50-Day EMA, then it’s likely that we will continue to see an attempt to get back to the 1.10 level, followed by the 1.11 level. That being said, I anticipate a lot of erratic and choppy behavior, so this is more or less going to be a short-term trader type of market, but that’s essentially what we have seen for quite some time anyway. I do not see that changing anytime soon, barring some type of major meltdown financially.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire