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EUR/USD Forecast – Euro Continues to Find Support

By:
Christopher Lewis
Published: Jun 7, 2023, 13:39 GMT+00:00

The euro has pulled back just a bit during the early hours on Wednesday, only to find support underneath the crucial 200-Day EMA yet again.

Euro, FX Empire

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EUR/USD Forecast Video for 08.06.23

Euro vs US Dollar Technical Analysis

The euro has initially fallen during the trading session on Wednesday, breaking below the 200-Day EMA. By doing so, it did show a bit of negativity but I think at this point we will more likely than not find plenty of buyers underneath and I do think that it’s probably only a matter of time before we bang back and forth in the same range that we have been in. Not only do we have the 200-Day EMA indicator here, but we also have a bit of an intermediate term trend line. In other words, I think we have a lot of noise here and it does make a lot of sense of the market would struggle to figure out where it wants to go.

Of particular note will be the low of the last 2 weeks, right along with a high of the last 2 weeks. Until we break out of this range, I assume that it remains a back and forth sideways market, and therefore will trade it as such. However, if we do break out then I’m willing to follow the market in whichever direction it goes. Keep in mind that there is a Federal Reserve meeting next week, and of course the European Central Bank has their interest rate announcement the very next day. In other words, we may see tentative sideways trading between now and then, and could just possibly drift right through the trendline, making it unimportant.

Ultimately, I think this is a situation where we are trying to build up inertia after those 2 central bank meetings, and therefore it is interesting to see how it plays out. If we were to break to the upside, the target could be as high as 1.10, but on the other hand, if we were to break down below the bottom of this range, then I suspect that the 1.05 level would be targeted next. Between now and then, I’m assuming that we get a bit of choppy behavior, and therefore you will have to keep that in mind as you put trades out there, recognizing the volatility on short-term charts will probably continue to be very noisy.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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