EUR/USD Weekly Forecast – Euro Peaks Below Major Trend Line
EUR/USD Forecast Video for 05.06.23
Euro vs US Dollar Weekly Technical Analysis
The euro has gone back and forth during the week, which makes a certain amount of sense considering that the 50-Week EMA is sitting right here, right along with the major trend line that everybody has been watching. Ultimately, I think this is a situation where we will continue to see a lot of volatility, and that does make quite a bit of sense due to the fact that the global economic situation is so uncertain.
The US dollar will be used as a safety currency, but it should be noted that on June 14 we have the Federal Reserve meeting, followed the very next day by the European Central Bank meeting. In other words, I expect a lot of back-and-forth noisy behavior, and traders will have to pay close attention to it. With this being the case, I think you’ve got a lot of noise out there just waiting to happen and therefore I think you get a situation where you have to look at whether or not the central bank show any type of divergence, but it’s worth noting that in the last week or so we have seen Germany drop into a recession, and one would have to believe that the ECB is probably going to blink before the Federal Reserve.
It’ll be interesting to see how this plays out, but I think ultimately this is a situation where we have the uncertainty out there that could cause a lot of noisy behavior, and then of course we have the possibility that if we break out of this range for the past week, we could see momentum come into the picture. In a sense, it does set up a bit of a “binary trade” if we can break either the top or bottom of the candle.
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This article was originally posted on FX Empire
