EUR/USD Forecast – Euro Continues to Find Buyers on Dips

EUR/USD Forecast Video for 04.07.23

Euro vs US Dollar Technical Analysis

The euro has initially pulled back just a bit during the trading session on Monday, testing the 50-Day EMA again. The 50-Day EMA is an area that I think you see a lot of noise at, and therefore I think we will continue to see buyers jump into the market in this general vicinity, as it offers a little bit of value. With that being the case, it’s probably only a matter of time before we continue to try to reach toward the 1.11 level, which is a psychologically important figure, and an area that recently had been a bit of trouble. With that, given enough time I think you probably continue to have plenty of interest in this market, but I don’t like the idea of chasing it every time it drops. In general, we could find ourselves very choppy, and confused. That’s been the overall attitude of markets for a while, and I just don’t see how that changes with the ECB and the Federal Reserve essentially being on the same path.

The 1.10 level has a certain amount of psychology attached to it, so I think that there might be a big fight just waiting to happen in the general vicinity, but we will have to wait and see. I have no interest in selling this pair until we break down below the 200-Day EMA, although I do think that the US dollar will probably start to strengthen again, it just might not be against the euro itself. With that being the case, I like the idea of buying dips, but on short-term charts only. Whether or not we can truly break out remains to be seen, but I certainly think that in the short term we have the high probability of the market going nowhere and essentially treading water.

This will be especially true on Tuesday, as it is Independence Day in the United States, and we don’t have a lot going on. With the lack of liquidity and lack of economic news, I anticipate that we continue to see this market stay in this overall range for the time being. If you are short-term trader with a range bound system, this might be the market for you.

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