EUR/USD Weekly Forecast – Euro Has Had a Tough Week in Volatile Trading

·2 min read

EUR/USD Forecast Video for 22.05.23

Euro vs US Dollar Weekly Technical Analysis

The euro has gone back and forth during the trading week as we are trying to figure out what’s going on with markets in general. We are between the 50-Week EMA underneath, and the 200-Week EMA above. This typically means that you’ll see some choppy volatility, which in this environment makes quite a bit of sense as we have so many questions to be asked.

With this, the market has a lot of questions to ask of itself, and of course, the risk appetite of the market will continue to have a major influence attached to it. The risk appetite is all over the place, but quite frankly I think this is a situation where you need to be very cautious of putting on too big of a position in one direction or the other. That being said, Friday did show some signs of life for the euro again, suggesting that perhaps we are not ready to fall apart quite yet.

I would anticipate a lot of back and forth in what could end up being a summer range, and therefore a range bound market trading strategy might come into the picture, but as things stand right now it’s obvious that there is quite a bit of buying pressure over the longer term. That being said, it’s probably worth noting that we are near the 50% Fibonacci or to level, and that of course has its own ramifications. The markets still have to deal with the volatility and noise going forward and therefore you will have to exercise caution more than anything else at this point.

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

This article was originally posted on FX Empire