EUR/USD Forecast – Euro Continues to Recover

EUR/USD Forecast Video for 31.07.23

Euro vs US Dollar Technical Analysis

The euro has rallied a bit during the trading session on Monday, as we continue to see an attempt to recover from the 50-Day EMA. That being said, the market is likely to continue to see a lot of noisy behavior, as we are also hanging around the 1.10 level, a large, round, psychologically significant figure. With this being the case, the market will more likely than not see a lot of noise, but we are still very much in an uptrend. I also recognize that the market will continue to be very noisy, due to the fact that a lot of people are worried about a recession in Germany, and of course aren’t completely convinced about the Federal Reserve and what they are going to do next.

If we were to turn around and break down below the 50-Day EMA, we could see this market drop down to the 1.09 level, which is an area where we have seen a lot of support in. Furthermore, we also have the 200-Day EMA, and therefore I think buyers would be there as well. If we break down below the level, then the euro would drop rather significantly. That being said, it doesn’t seem very likely that it happens easily, so therefore I think you have a situation where things remain rather noisy, and therefore we will eventually grind it back toward the high. It probably takes quite a bit of time to get up there, because quite frankly I think the markets are trying to sort themselves out with the overall attitude of the Federal Reserve and the European Central Bank being somewhat muddy. It is worth noting that Christine Lagarde recently stated that the EU may be running into a lot of headwinds, and therefore it is likely to continue to see a lot of volatility.

All things being equal, this is a situation where you will probably see a lot of choppy behavior more than anything else, and with that being the case, the market is likely to continue to see a lot of short-term trading more than anything else I would not put a lot of money into this pair right now.

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