EUR/USD Forecast – Euro Gives Up Early Gains on Monday

EUR/USD Forecast Video for 14.11.23

Euro vs US Dollar Technical Analysis

The euro initially tried to rally during the trading session on Monday, but then gave back a certain amount of momentum to show signs of hesitation. We are sitting just above the 50-Day EMA, which of course is an area that has been support a couple of times already. If we were to break down below the 50-Day EMA, then we could continue to drop from there and go down to the 1.06 level underneath. Underneath that, we have the bottom of the bearish flag that has been so important for this market, which could be the target before it is all said and done.

On the other hand, if we were to turn around and take out the 200-Day EMA to the other side, then it’s possible that the market could try to take out the 1.0750 level. Taking that out then opens up a significant amount of bullish pressure and perhaps even a potential “FOMO trade” that could send the market all the way up to the 1.10 level over the longer term. Furthermore, you should also see quite a bit of noise between the 50-Day EMA and the 200-Day EMA indicators, which is typical for technical traders and their systems to get a bit noisy in this area.

Keep an eye on the Federal Reserve, and any statements coming out of Federal Reserve members as traders are paying close attention to the trajectory of monetary policy coming out of the United States, which could remain tight for much longer than anticipated. Furthermore, we also have the European Central Bank more likely than not going to have to listen monetary policy much quicker than the Federal Reserve will. This should continue to favor the US dollar, which also has a bit of a boost due to the idea that the US dollar is a “safety currency”, and with the world being the way it is at the moment, it’s likely that we will continue to see more downward pressure. In general, expect a lot of noisy trading, as there is a lot of uncertainty out there at the moment.

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