EUR/USD Forecast – Euro Plunges Yet Again on Friday

EUR/USD Forecast Video for 20.02.23

Euro vs US Dollar Technical Analysis

The Euro has fallen again against the US dollar during the trading session on Friday, as we continue to see a lot of negativity out there in general. Keep in mind that the US dollar will be the first place people run to for safety in this environment, so it’s probably worth noting that we have seen more of a “risk off” move around the world during the day.

The Euro has seen a lot of action at 1.06, but I suspect it is only a minor support level, perhaps opening up the possibility of a challenge of the 1.05 level, which is much more important in the sense that it was a swing low, and of course the 200-Day EMA sitting in that same area has a huge effect as well. Because of this, I think it’s probably only a matter of time before we see that area challenged, especially as we have seen a couple of impulsive negative moves over the last couple of weeks. With this, I think the real battle begins in that area.

If we were to break down below the 200-Day EMA on a daily close, then I think you could have a situation where the Euro gets hit really hard. At that point, it would not surprise me at all to see the Euro go down to parity again. On the other hand, if we turn around and take out the shooting star from the Tuesday session, it opens up a move to the 1.10 level above, but that area looks extraordinarily difficult to break higher than, due to the fact that we had seen so much massive selling at what is a large, round, psychologically significant figure, and the 50% Fibonacci level from the big move lower.

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