EUR/USD Forecast – Euro Gains but then Falls

EUR/USD Forecast Video for 23.08.23

Euro vs US Dollar Technical Analysis

The Euro made a modest comeback in Tuesday’s trading session, showing signs of strength as it climbed past the 1.09 mark, but then faltered a bit. This upswing hints at a potential move towards the 50-Day EMA, hovering just below 1.10. Now, I’m not predicting a major downfall of the US dollar, but there’s a chance it might ease a bit against the Euro.

The 200-Day EMA is holding steady underneath, and it lines up neatly with an important upward trend line that has been significant for quite some time. Expect a bit of back-and-forth action, some ups and downs, but the ongoing consolidation we’ve seen makes sense. The market seems to be sticking to its established path, which could lead it to aim for the 1.1250 level.

A U-turn and a breach below the 200-Day EMA and that trusty upward trend line could trigger a slide towards the 1.0650 mark, an area that has caused bounces before. Going below this might set the stage for more substantial declines. All things considered; I have a feeling the market will keep inching upward slowly. Why? Well, a lot of this feeling comes from traders thinking the Federal Reserve might take it easy on tightening its policies. But don’t forget about the European Central Bank and what it might do.

Here’s the kicker: Jerome Powell and Christine Lagarde are scheduled to talk in Jackson Hole, Wyoming, at the end of the week. This event might give us a clearer sense of where the market is headed. Until then, I’d say the market might maintain its gentle upward drift. By the end of Friday’s session, we could have a better grasp of the situation. Right now, it looks like the path is leading toward a gradual rise.

To wrap things up, the Euro’s recent moves tell us that it perked up a bit on Monday. Breaking past 1.09 is a good sign. And this could pave the way for a move towards 1.10 with the 50-Day EMA in sight. Despite the ups and downs, the market’s current trend makes sense, fitting within the expected pattern. The 200-Day EMA and that trusty trend line give us some solid footing. While things aren’t crystal clear, Powell and Lagarde’s speeches could steer us. Until then, let’s keep our eyes on the slow climb, though Friday could always throw a curveball. Time will tell in this pair.

For a look at all of today’s economic events, check out our economic calendar.