EUR/USD Forecast – Euro Continues to Consolidate

EUR/USD Forecast Video for 21.06.23

Euro vs US Dollar Technical Analysis

The euro has gone back and forth during the trading session on Tuesday, as we are hanging around the 1.09 level. The market recently has seen a lot of bullish pressure after the ECB decision, and therefore, we could likely see plenty of volatility and choppiness. If we do fall from here, the 50-Day EMA could be targeted, which currently sits around the 1.0833 level. Ultimately, this market does have buyers underneath because, quite frankly, the world seems to be playing a game of chicken with the Federal Reserve.

The 1.08 level is also an area that continues to be important, as was the top of a previous consolidation area. The 50-Day EMA obviously will have some technical importance, but breaking down below is not necessarily something that will be impossible to do. The 200-Day EMA continues to hang around the uptrend line near the 1.07 level and is rising. In other words, we are still in an uptrend, but if we break down below the 200-Day EMA, we could send this market down to the 1.06 level. Anything below that level opens up the floor in the market, and the market goes much lower.

On the other hand, if we were to turn around and take out above the 1.0950 level, then it’s likely that we could go to the 1.11 level. In other words, I think we have quite a bit of volatility ahead of ourselves, and therefore think we’ve got a situation where the market will probably continue to look higher but may struggle to get there quickly.

Keep in mind that the summer is typically rather quiet, so the moves will be much smaller than you may think, even though there are a lot of crosswinds out there that could cause a lot of noisy behavior. With this being the case, the market continues to be very choppy, so you must be nimble in any of your positions. Ultimately, this is a market that I think continues to be very noisy. Therefore you should be cautious with your position sizing as we await some clarity over the next several sessions in this pair.

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