EUR/USD Forecast – Euro Gives Up Early Gains

EUR/USD Forecast Video for 17.02.23

Euro vs US Dollar Technical Analysis

The Euro has initially tried to rally during the trading session on Thursday but gave back gains rather quickly as we continue to see a lot of inflation coming out of the United States. By doing so, the market is sitting on top of the 50-Day EMA, so it’s possible that we break down and go looking for the 1.06 level. The 1.06 level has offered support, and if we can break down below there is likely that we go to the 1.05 level. The 1.05 level is where we see the 200-Day EMA coming into the picture.

Ultimately, I do think that the market will continue to be very noisy, but looking at this chart, I do think that the Euro is probably facing quite a bit of downward pressure. It’s also worth noting that the Federal Reserve is finally starting to see the market behave the way it wants to. After all, they’ve been basically screaming at the top of their lungs that the interest-rate situation and of course the monetary policy situation is going to be tight much longer than anticipated.

On the other hand, if we turn around and break above the top of the shooting star from the Wednesday session, it’s possible that we could go to the 1.10 level above, where we have sold from quite drastically. Breaking above that would obviously be very bullish, and therefore it’s worth noting that market participants would probably jump in and get involved in a “FOMO trade” at that point. That being said, this is a market that I think continues to see a lot of volatility.

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