EUR/USD Weekly Forecast – Euro Gives Up Early Gains
EUR/USD Forecast Video for 27.03.23
Euro vs US Dollar Weekly Technical Analysis
The Euro has shown itself to be somewhat wanting, because even though we have seen a lot of bullish pressure early in the week, the post-FOMC reaction has been almost completely repudiated, and it does suggest that perhaps we have quite a bit of negativity ahead. With that being the case, I think this is a market that is probably going to continue to be a little bit noisy and difficult. That being said, the market is more likely than not going to continue to see a lot of noisy behavior, so therefore I think it’s probably going to be easier to trade this from a shorter-term chart than the weekly one.
Underneath, see the 1.06 level is support, perhaps all the way down to the 1.05 level as well. If we do break down below there, then it opens up a trap door and we would more likely than not see a lot of downward pressure on the Euro. However, I think we have a situation where we are more likely than not going to see back-and-forth trading between 1.05 and 1.09.
Keep in mind this is probably more about the US dollar than anything else, and therefore it’s likely that we continue to see choppy, and range bound behavior, so there’s no point in trying to fight this from a longer-term standpoint. However, if we do break out of this range, then it’s obvious that we will have a much bigger move. Longer-term, one has to keep in mind that the US dollar seems to be very stubbornly hanging on to its strength, despite the fact that we have had a nice bounce to the 50% Fibonacci level.
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This article was originally posted on FX Empire
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