EUR/USD Forecast – Euro Gives Up Early Gain At 61.8% Fibonacci Retracement Level

EUR/USD Forecast Video for 22.11.23

Euro vs US Dollar Technical Analysis

The euro initially tried to rally during the session on Tuesday but gave back the initial push higher as it looks like the 61.8% Fibonacci level is holding as short-term resistance. We break down below the bottom of the candlestick, then the market is likely to go look into the 1.09 level. Underneath there, the market then drops down to the 1.0850 level. Underneath there, then the market could drop rather significantly, perhaps reaching the 200-Day EMA before it’s all said and done.

That being said, I don’t think it’s going to be an easy move, and there is also the possibility of the move to the upside continuing. I think the 1.10 level above will be a significant resistance barrier, so if we were to break above there, it would obviously be a huge sign of momentum continuing. In that environment, we could see a run all the way to the 1.1250 level, but obviously we are a bit stretched at the moment, and therefore at the very least a bit of a pullback would make some sense. After all, markets do not go straight up in the air forever.

That being said, there are a lot of questions now as to what happens next, especially as there’s a high probability that both of these economies head into recession. Perhaps this has been a major short covering rally, or possibly people truly believe that the Federal Reserve is going to turn its monetary policy around. That certainly has been the hope for at least a year now, and the reality is that traders are looking for cheap money to start speculating again. This is especially true in places like Wall Street, which have no idea how to function without cheap money as the economy itself doesn’t warrant a lot of “risk on behavior.”

I think at this point the bulls will have to take a bit of a breather, and even if the market were to go higher from here, at the very least you would expect to see some type of consolidation in order to work off the massive amount of froth that we have recently seen jump into this market.

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