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

EUR/USD Forecast Video for 11.10.23

Euro vs US Dollar Technical Analysis

The euro has initially tried to rally during the early hours on Tuesday but turned around to show signs of hesitation. At this point, the market is likely to continue to see a lot of volatility, and that makes sense considering that the markets are dealing with the bond market in America being open on Tuesday, which had previously been closed on Monday for Columbus Day. Because of this, now we have to worry about this through the prism of whether or not rates are going higher or lower. With this, the market is likely to continue to see a lot of volatility and noise out there.

That being said, the reality is that the euro is in a downtrend, and it makes perfect sense that we would continue to see selling pressure, therefore I think you have a situation where the market will eventually try to test the 1.05 level underneath, and if we break down below the lows, then it could open up and move down to the 1.0250 level, maybe even the parity level after that. All things being equal, this is a market that continues to be a “fade the rally” type of situation, and therefore I have no interest in buying the euro whatsoever.

Furthermore, you have to keep in mind that the European Union is going to have to deal with a recession this winter, and perhaps more importantly, the fact that energy could be a major issue as well, which is not exactly a recipe for economic growth, nor is it going to make people very confident in the currency overall. If we continue to see what we have seen in the recent past, the market is likely to continue to see a lot of reactionary pressure to the interest rates in America, and truthfully, that’s the most important thing to pay attention to. Watch that 10 year yield in the US, it will tell you whether the US dollar is going to strengthen, or we can. Either way, I just don’t see a situation where the euro turns it around longer term anytime soon.

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