EUR/USD Forecast – Euro Gives Up Early Gains Yet Again

EUR/USD Forecast Video for 09.02.23

Euro vs US Dollar Technical Analysis

The Euro has rallied initially on Tuesday but has also given up some of the gains to show signs of hesitation. This tells me that the Euro itself is weak, but now we need to see some type of momentum one way or the other. After all, you can make a serious argument about the previous candle being neutral, and therefore it could be a situation where we are trying to form some type of bottoming pattern. The fact that we are sitting on top of the 50-Day EMA also has a certain amount of influence as well, so with that in mind, expect choppiness.

If we break down below the 50-Day EMA, then the 1.06 level would be targeted almost immediately. After that, we have the 1.05 level, which also features the 200-Day EMA. A lot of technical traders will more likely than not be interested in that area, so it is most certainly worth paying attention to. Anything below there opens up a dump in this pair, perhaps sending it tumbling back down the parity. On the other hand, if we turn around and break above the 1.0770 level, we may make another run toward the 1.09 level in the short term. Either way, I think that rally is starting to get a little extended, so short-term rally probably gets met with a lot of selling pressure at this point. Regardless, I think the US dollar is starting to flex its muscles again.

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