EUR/USD Forecast – Euro Bounces From Lows of the Early Session
EUR/USD Forecast Video for 01.02.23
Euro vs US Dollar Technical Analysis
The Euro initially fell during the trading session on Tuesday, but then turned right back around to show signs of life. At this point, it looks as if the 1.08 level is trying to offer a bit of support. If we break down below there, then I think it’s likely that we could drop down to the 1.06 region. Keep in mind that we have the Federal Reserve meeting over the next 48 hours, and then when we get the announcement, press conference, and the question and answers session. Ultimately, the market will continue to see a big move one way or the other after that, as the world waits to see whether or not the Federal Reserve is going to shift its attitude.
There are a lot of people out there who believe that the Federal Reserve is going to slow down, perhaps even start to loosen monetary policy by the end of the year. However, the Federal Reserve continues to sound as hawkish as they can, but the market just does not bother believing.
Just above, the market had broken above the 1.09 level, and therefore if we were to break above all of that, then it’s likely that we go looking to the 1.10 level. All things being equal, this is a market that has been extraordinarily bullish, but if Jerome Powell can get his message across, we could have a significant pullback. That pullback could lead to the 1.06 level, especially as the 50-Day EMA is sitting right in the same neighborhood.
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