EUR/USD Forecast – Euro Pulls Back

EUR/USD Forecast Video for 18.04.23

Euro vs US Dollar Technical Analysis

The Euro fell to go below the 1.10 level during the trading session on Monday, as we continue to see a lot of noise in this market. Ultimately, I think we’ve got a situation where traders will continue to look at this for opportunities to get long, as it could offer a little bit of value. After all, the market definitely seems to be negative on the US dollar in general, despite the fact that there is a lot of fear out there. Most traders believe that the Federal Reserve is going to do everything it can to bail out the system, and that means they will start loosening monetary policy again. If that’s going to be the case, then it’s very likely what we have is a situation where the value hunters will come back into the market given enough time. That being said, we need to see some type of bounce before we get long.

If we do break down below the 1.09 level, then we could see this market raced toward the 50-Day EMA underneath, which is closer to the 1.08 level. It is rising, and therefore it’s likely that what we can see is a scenario where there should be a certain amount of support underneath that a lot of people will continue to look for in order to get long. All things being equal, the pair has been overbought for a minute, so I think at this point we need to see this pullback because it probably helps buyers pick up a little bit of momentum.

All things being equal, this is a scenario where I think you do eventually see a turnaround, but not quite yet. After all, we have bounced significantly from the 200-Day EMA, and of course that attracted a lot of longer-term money. The markets continue to see a lot of concerns when it comes down to the Federal Reserve loosening monetary policy to help the global financial situation. Nonetheless, if you are patient enough you may get an opportunity to go along again. On the other hand, if you were to see the market continue dropping, we could drop all the way back down to that 200-Day EMA.

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