EUR/USD Forecast – Euro Continues to Grind Higher

EUR/USD Forecast Video for 15.06.23

Euro vs US Dollar Technical Analysis

The euro has initially fallen during the trading session on Wednesday as we wait for the Federal Reserve interest rate decision later in the day. Ultimately, this is a market that I think given a time will probably see a lot of noisy behavior, but ultimately I do think it’s probably only a matter of time before we have to have some type of resolution. It’s generally assumed that the ECB will be raising rates on Thursday, so a lot of this will come down to not only the Federal Reserve decision, but the statement that they give late on Wednesday.

Looking at the technical analysis, the market is threatening the crucial 50-Day EMA, so I think a lot of traders will be paying close attention to how we behave around here. If we were to break out above the top of the candlestick from the previous session on a daily close, that could really get the market moving. With that being said, I think we got a situation where traders have to look at this through the prism of whether or not the Federal Reserve is going to become a bit more aggressive, or if the ECB will win the day.

Underneath, we have the 200-Day EMA hanging around the uptrend line that a lot of people will be paying close attention to. Ultimately, I think this is a situation where we are trying to determine whether or not the uptrend can continue, which at this point from a technical analysis standpoint, it does very much look like it could.

With this, I think you got to look at this through the prism of whether or not we get any value on a dip. However, if we were to turn around and break down below the 200-Day EMA and the uptrend line, ostensibly the 1.07 level, then things could turn around quite rapidly, opening up the possibility of a move down to the 1.05 level. On the other hand, breaking above the highs of the previous session on a daily close, we could see this market go looking to the 1.10 level above.

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