EUR/USD Forecast – Euro Breaks Higher

EUR/USD Forecast Video for 10.02.23

Euro vs US Dollar Technical Analysis

The Euro rose during the trading session on Thursday, to break above the highs of both Tuesday and Wednesday. By doing so, it shows that there is still a significant amount of interest in the Euro, and perhaps selling the US dollar. Having said that, this could just be a short-term bounce after we have seen such a massive move lower. In this environment, I suspect that we have a lot ahead of us that could cause some issues, and therefore a short-term rally that ends up selling off later makes a certain amount of sense.

The size of the candlestick is of course something worth paying attention to, and it is somewhat impressive considering that we have seen so much trouble as of late. However, I would anticipate that somewhere near the 1.09 level we may run into some trouble. Because of this, I think you need to be very cautious with your trades, because the volatility in the markets overall seems to be getting worse, not better. As long as that is going to be the case, then you need to be very cautious with how you trade, but I do think eventually we get some type of clarity. The 50-Day EMA offers a little bit of support does make a certain amount of sense, so the bounce from there also makes that much more sense.

If we were to turn around and break down below it, the 1.06 level should be support, right along with the 1.05 level where we also have the 200-Day EMA showing up. Anything below there kicks off a major negative trend in the market, perhaps opening up the possibility of going all the way down to parity.

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