EUR/USD Forecast – Euro Gives Up Its Early Momentum

EUR/USD Forecast Video for 17.01.23

Euro vs US Dollar Technical Analysis

The Euro has initially tried to break out to the upside during the day on Monday but gave back the momentum relatively early in the session to form a less than appealing candlestick. That being said, there are plenty of buyers underneath, so I’m not overly concerned about the trend at the moment. Given enough time, I would anticipate that there will be more of a “buy on the dip” mentality, as we have seen so much in the way of momentum to the upside.

The 1.08 level could be an area of support, but I see even more near the 1.07 level, so at this point I believe that the buyers are still waiting to find dips to get involved. Whether or not the ECB remains as hawkish as it says remains to be seen, but right now most people were banking on the Federal Reserve blinking, and therefore giving this a real opportunity to go higher.

The reality may be something different, but right now this is the only game in town, shorting the US dollar. How long this lasts, I do not know, because the fundamentals don’t necessarily support this. However, you cannot argue with the markets, because they will do whatever they want to do until they are done. I can give you 100 reasons why the US dollar should strengthen right now, but right now we just don’t have it going on in reality. That being said, I also see that there is a possibility that the 1.10 level above could be the target, and I think that would probably be a place where you would see a lot of psychological resistance.

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