EUR/USD Forecast – Euro Continues to Grind Sideways
EUR/USD Forecast Video for 02.05.23
Euro vs US Dollar Technical Analysis
The Euro went back and forth during the course of the trading session on Monday again, as we continue to grind sideways or just above the 1.10 level. This is an area that I think will continue to be consolidated, and therefore we have a lot of noise to chew through. With this being the case, you should also take a look at the 50-Day EMA, which is racing toward the 1.09 level, an area that I think is significant support.
On the upside, if we do break higher, you would be looking at the 1.1250 level, which would be the next target. Regardless, I think this is a market that continues to be very noisy, and of course has quite a bit hesitation in this area, as we had seen a shooting star on the weekly chart, which of course is obviously a negative turn of events. Either way, we have to wait and see whether or not we get some type of impulsive candlestick to get moving.
This week may very well be the remedy for that, because we have the FOMC meeting that will feature an interest rate decision, followed by the very next day on Thursday with the ECB to win an interest rate hike and a statement. That will clearly make this a market that will be very noisy during the week, and with that being the case, I think we continue to grind sideways and really struggle for traction until we get to the end of the week. Remember, not only do we have to get through those 2 central bank meetings, but we also have to get through the Non-Farm Payroll announcement on Friday as well.
Because of this, I think the first couple of days this week will be very quiet, and then will see a lot of increase volatility. Whether or not we can actually take off in one direction or the other remains to be seen, but it’s probably worth noting that the buyers have been very resilient for some time, with the occasional brutal selloff on some type of news or announcement in one of the economies.
For a look at all of today’s economic events, check out our economic calendar.