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EUR/USD Forecast – Euro Shows Hesitation on Wednesday Session

By:
Christopher Lewis
Published: Mar 29, 2023, 13:47 GMT+00:00

The Euro has gone back and forth during the day, showing signs of hesitation as we may be running into yet another brick wall.

Euro, FX Empire

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EUR/USD Forecast Video for 30.03.23

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the trading session on Wednesday as the same resistant barrier is coming into the picture again. After all, we have seen a massive shooting star from the previous week form in this area, and it’s also worth noting this is where the Euro sold off from so drastically previously. This tells me that the 1.09 area is going to continue to be very resistive, perhaps extending all the way to the 1.10 level. If we were to break above the 1.10 level, that could change.

All things being equal, I will be looking for signs of exhaustion to start fading again. After all, the market still has all of the same problems that we have been dealing with for some time, not the least of which would be a potential slowdown of the overall global economic situation. Furthermore, interest rates in America continue to be very stubbornly high, I think that is going to continue to be the case. Yes, the Fed Funds Rate markets are suggesting that perhaps we are going to see them cut rates as much as 150 basis point between now and the end of the year, but the reality is that the market has shown itself to be over exuberant as the Federal Reserve is clearly not on the same wavelength as market participants.

The 1.08 level underneath could be support, but if we were to break down below there, the market is likely to look towards the 50-Day EMA as a target, and then possibly the 1.06 level. After that, you then have the 1.05 level which of course has a certain amount of psychology attached to it. Anything below there opens up a trapdoor effect of massive selling, sending the market down to the parity level before it would cause a lot of headlines and therefore it’s likely that we would see a lot of people be very interested in that. Regardless, I would anticipate a lot of choppy behavior, because that is the overall attitude of markets in general. The market will continue to be beholden to the latest rumor and narrative, which has been the case for a while.

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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