EUR/USD Forecast – Euro Continues to See a Lot of Chop

EUR/USD Forecast Video for 25.01.23

Euro vs US Dollar Technical Analysis

The Euro has found itself to be a bit hesitant to continue going higher, as we have seen so much in the way of an overstretched condition. It looks as if the 1.09 level continues to offer resistance, and therefore we may need some type of catalyst to get things moving. More likely than not, we will pull back into the noise underneath, and grind it back and forth. With that being the case, the 1.06 level looks to be the short term lower bound in the market and it could attract a lot of attention if we were to fall to that area. The 50-Day EMA is sitting in the same general vicinity, so that could be a bit difficult to get below.

I think at this point the only thing that you can count on is a lot of noise and volatility, but that should not be a huge surprise considering that the market is trying to figure out whether or not there is going to be momentum going forward, or if we need to consolidate to work off some of the excess momentum come up with the last couple of weeks. I think we see more range bound trading than anything else, but right now it looks like any pullback will be just that, a pullback.

If we did break down below the 1.06 level, then it’s likely that the market could go down to the 1.0350 level. In this area, it would open up the gate way of going back down to the parity level if we continue to see a lot of negativity in that area.

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