EUR/USD Forecast – Euro Gives Up Early Gains to Kick Off the Week
EUR/USD Forecast Video for 24.01.23
Euro vs US Dollar Technical Analysis
The Euro initially shot higher during trading on Monday, breaking well above the 1.09 level. However, there has been a massive amount of selling above that level, and I think it shows that we are in fact going to continue to see more noise than anything else. After all, even though everybody’s trying to sell the US dollar, we are oversold at this point when it comes to the greenback.
At this juncture, I would anticipate that a pullback is probably long overdue and we may be getting to the point where the exhaustion is starting to set in. If the candlestick closes anywhere near the shape it looks right now, it would be a very sign but we have seen short-term pullbacks repudiated recently. In other words, I think the overall trend remains intact for the intermediate term, but longer term we still have a long way to go to completely exonerate the Euro and all of its issues. After all, the European economy is struggling still, and there are a lot of concerns when it comes to the longer term viability of energy. Yes, the Europeans may have dodged a bullet when it comes to the winter, but they still have to worry about energy supply for industrial use.
Beyond that, there are a lot of questions as to whether or not the Europeans can raise rates as much as the ECB claims, so in a sense this is just like the US central bank, people are doubting what they are saying, so it’s a case of nobody believes anybody at this point.
For a look at all of today’s economic events, check out our economic calendar.