EUR/USD Forecast – Euro Does Very Little on Friday

EUR/USD Forecast Video for 24.07.23

Euro vs US Dollar Technical Analysis

The euro has done very little during the trading session on Friday, which in and of itself is rather bullish considering just how ugly Thursday was. That being said, it’s very likely that we could go a bit lower before finding significant support, with the 1.11 level being a potential support level, followed by the crucially psychological 1.10 level and of course the 50-Day EMA. Regardless, this is a market that’s been very bullish and the fact that the US dollar has strengthened the bed makes a certain amount of sense as traders are starting to take profit.

I do not think that the trend has changed, and quite frankly I think this is basically a situation where the market had gotten way ahead of itself, and therefore it’s probably worth noting that gravity had to come back into the picture. At this point, it looks as if the 1.1250 level is an area that offers a significant amount of resistance, so if we were to break above there it could open up the possibility of a much bigger move.

All things being equal, this is a situation where if we can break out above there opens up the possibility of a move to the 1.15 level. The 1.15 level is an area that has a lot of psychology attached to it as well, so I do think that the area would offer a juicy target for those bullish of the euro. Furthermore, it could be a major target and an area where people could come in and start taking profits. If we break above there, then it becomes more of a “buy-and-hold” situation.

All of that being said, keep in mind that the difference between the central banks will be the most important thing to pay attention to, and with the fact that people are betting that the Federal Reserve only has one more interest rate hike, it has put some pressure on the US dollar in general. However, if we get a major slowdown around the world, quite often the US dollar will be the first place they run. With this being said, expect choppiness.

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