EUR/USD Forecast – Euro Continues to Struggle

EUR/USD Forecast Video for 23.01.23

Euro vs US Dollar Technical Analysis

The Euro has rallied again during the early hours on Friday but gave back gains rather quickly once we got above the 1.08 level. This is an area that continues to cause a lot of problems for the Euro, so I don’t think that’s a huge surprise. This is simply a back-and-forth type of situation where we just can’t seem to get our footing. I think that given enough time; we will have to make a bigger decision but right now it’s obvious that we are not ready to do so. With that being the case, I look at this through the prism of a range bound market that just doesn’t know what to do with itself. According to the speakers at Davos, higher for longer and more tightening is coming from both central banks, so we don’t really have a one-way trade anymore.

With that being said, if you need to start looking at the possibility of a global slowdown as part of the reasoning for a move in this market. Keep in mind that when the global economy slows, that typically helps the US dollar as people look for safety. I don’t necessarily know that’s exactly what’s going to happen here, but it certainly looks as if a short-term pullback is probably in the works regardless. That being said, if we were to break above the 1.09 level, then it opens up a clear shot to the 1.10 level. On the downside, I would anticipate that the 1.06 level should be supported, assuming we even get that far on a pullback. In other words we are more likely than not going to see more chop.

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