EUR/USD Forecast – Euro Plows Higher
EUR/USD Forecast Video for 13.07.23
Euro vs US Dollar Technical Analysis
The euro has rallied significantly during the trading session on Wednesday, as it looks like we are trying to break above the 1.11 level. If we can take out that level, then the euro will continue to go higher and CPI numbers in the United States came out in the Core CPI reading at 0.2%, as opposed to the expected 0.3%. This suggests that perhaps inflation is starting to cool off a bit in the United States, but still remains a little hotter than anticipated.
At this point, it looks like the market is doing everything it can to break out, and if we do break above the 1.11 level, then it’s likely that we could go reaching to the 1.15 level over the longer term. While I do think that there is a lot of potential for some type of “risk off event”, that seems to be in the rearview mirror at the moment. If we do get some type of shock to the system, obviously the US dollar is the first place that a lot of people run to. As long as we do not get some type of really bad headlines, I anticipate that the market will find a reason to continue going higher.
Underneath, we have the 50-Day EMA near the 1.09 level, which should offer a bit of support, and I do think that given enough time buyers would come in and pick that up. At this point though, it seems very unlikely that we get anywhere near there, as the market is racing higher. This is yet another reason to think that the US dollar will start to fall, so this will not only be good for the euro, but also many other major currencies around the world such as the British pound and the Swiss franc. Furthermore, it could bleed into the gold markets, which are also having a good day, and of course it’s worth noting that gold and the Euro have a positive correlation as they are both considered to be an antidote for holding US dollars. Buying on the dips more likely than not will continue to be the way going forward.
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This article was originally posted on FX Empire
