EUR/USD Forecast – Euro Continues to Bounce From Potential Lows

EUR/USD Forecast Video for 11.08.23

Euro vs US Dollar Technical Analysis

The euro rallied a bit during the trading session on Thursday as we have bounced from the 50-Day EMA. The 50-Day EMA continues to be a major indicator that a lot of people will pay attention to for directionality. Underneath, the 1.09 level offers support, and then after that we have the 200-Day EMA, which is sitting right at the uptrend line. The uptrend line of course is something that everybody will be paying attention to as it is so obvious.

That being said, if we can break above the 1.1050 level, then it’s very likely that the euro will continue to go higher, perhaps reaching toward the 1.1250 level, an area that has been important multiple times, and of course is where we fell from last time. If we can break above there, then it’s likely that we go much higher. All things being equal, we are still very much in an uptrend, and therefore I don’t really know that anything has changed. This is a market that I think continues to see a lot of noisy behavior.

If we were to break down below the uptrend line underneath, then I think the market will eventually perhaps try to move down to the 1.06 level. Breaking the trendline would also be a major breach of support and could signify that the US dollar was about to strengthen quite drastically against not only the euro, but most other assets as well.

Either way, expect a lot of volatility but as things stand right now, we are still very much in an uptrend, so you have to assume that there will continue to be buyers in this market, at least in the short term. However, there are a couple of levels, as previously mentioned, that should be paid close attention to, because they could give us a bit of a “heads up” as to where we are going if things have changed. Expect noisy trading, but at the end of the day, you also should expect plenty of buyers and support just below, although inflation numbers in the United States should be watched closely to determine whether or not that continues to be the case.

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