EUR/USD Forecast – Euro Testing Recent Highs

EUR/USD Forecast Video for 14.04.23

Euro vs US Dollar Technical Analysis

The Euro rallied a bit during the trading session on Thursday, as it looks like we are trying to fight off any US dollar strength yet again. Ultimately, the market has broken above the 1.10 level, but quite frankly the market is sitting near the most recent high, so the question is still whether or not we are going to have a bit of a double top. The next 24 hours could be very crucial as to where we are going to go for the longer term. Ultimately, if we can break above the recent high, then it’s very likely that we could go looking to the 1.1250 level, possibly followed by the 1.15 level. However, if we were to break down from here, then the market will more likely than not revisit the 1.08 level.

Marketers dispenser trying to price in the idea that the Federal Reserve is going to have to change its monetary policy, and of course the ECB is still hawkish at the same time. This does set up for a potential move higher in the Euro, but the question is whether or not it can last a significant amount of time in the economic environment that we find ourselves in. While the inflation situation in the United States is starting to slow down a bit, it still has a long way to go before it would fall within historical norms, meaning that the Fed will probably continue to be tight going forward. Because of this, I think that we need to look at this market from 2 different perspectives.

The first perspective of course will be whether or not the Federal Reserve can continue to raise rates, and whether or not they sound hawkish. It appears that the financial world is expecting the Federal Reserve to write to everybody’s rescue now that there are some banking issues, but quite frankly even if that were the case, it may put a little bit of downward pressure on the Euro as people go running to the dollar for safety, after the initial selloff.

The sec. perspective would be that you just simply follow momentum, as markets have run more on momentum than anything else as of late. That being said, expect the volatility to continue.

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