EUR/USD Forecast – Euro Gives Up Early Rally

Christopher Lewis
Updated: Mar 23, 2023, 13:15 GMT+00:00

The Euro has initially rallied during the trading session on Thursday but has given back the gains as we have run into major selling pressure again.

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EUR/USD Forecast Video for 24.03.23

Euro vs US Dollar Technical Analysis

The Euro initially rallied significantly against the US dollar during the trading session on Thursday, but has run into a previous selling area, from which we plunged from. At this point, the market is likely to see a bit of exhaustion set in, due to the fact that we went parabolic over the last couple of days. Whether or not the market starts to roll over and turn trends again, that’s of course a different question, but at this point it certainly looks as if we have gotten a bit ahead of ourselves.

Keep in mind that the Federal Reserve raised rates just 25 basis points during the session on Wednesday, but at the end of the day there are a lot of concerns around the world about the banking system, and if that’s going to be the case, the US dollar is going to be at a premium. This area that we are in right now is an area that had been so bearish previously that one would have to assume that there should be a significant amount of selling pressure.

If we do break down below the bottom of the candlestick for the trading session on Thursday, then it’s likely that we could go down to the 1.08 level, an area that has been previous resistance. On the other hand, if we can rally above the top of the range for the Thursday session, we may try to threaten the 1.10 level, which of course is a large, round, psychologically significant figure, and an area that would attract a lot of attention. Anything above there then would kick off the next great leg higher. I think at this point, there are so many different economic issues out there that it’s probably only a matter of time before the US dollar picks up strength again, so it will be interesting to see how they play this out going forward. Regardless, I would not be a buyer all the way up here without at least seeing the market consolidate for a while as I don’t like to chase trading positions after a market has made such a sharp move.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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