EUR/USD Forecast – Euro Limps Along
EUR/USD Forecast Video for 23.11.22
Euro vs US Dollar Technical Analysis
The Euro rallied initially to kick off the session on Tuesday but continues to struggle overall. The 1.03 level has offered resistance, which makes a lot of sense considering that it was previous support. “Market memory” has come back into play, and therefore it’s not a huge surprise to see that what was previous support now offers selling pressure. If we break down below the lows of the Monday candlestick, it’s very likely that the Euro will continue to drop, perhaps down to the 1.01 level.
Keep in mind that the 50-Day EMA sits just below there as well, so it does make a certain amount of sense that we would see interest in that area. Add to that the fact that it was previous resistance, and it does make a lot of sense that there will be market memory down there as well. After that, you have the parity level which obviously has a lot of psychological importance.
On the other side of the equation, if we could somehow break above the 1.05 level, it might be the breakout of the Euro that everybody has been watching come to fruition. That being said, it’s difficult to imagine that the European Union is going to be a place where you want to place your bets on over the course of the next several months as energy is going to be a major issue. True, the ECB has stated that they are looking to become more hawkish to fight inflation, but quite frankly their hands are tied in this type of environment.
For a look at all of today’s economic events, check out our economic calendar.