EUR/USD Forecast – The Euro Bounces From a Trendline

EUR/USD Forecast Video for 05.09.23

Euro vs US Dollar Technical Analysis

The euro rallied a bit during the trading session on Monday, bouncing from the uptrend line that people have been paying so much attention to. Furthermore, we are sitting right around the 200-Day EMA, an indicator that of course a lot of people paid attention to. That being said, the market is also trying to sort out what to do next, but keep in mind that the market is also having to deal with the fact that it was Labor Day in the United States, so therefore a lack of liquidity would make quite a bit of sense. If we can break above the candlestick from the Friday session, and by extension the 50-Day EMA, that would be a major turnaround.

Underneath, the 1.0750 level is an area that people will be paying close attention to, because if we were to break below that level, it could descend quite a bit of downward pressure, perhaps continuing what we have seen as of late. At this point, we need to pay close attention to this area, due to the fact that we are at the bottom of the channel and now we are paying close attention to whether or not we can pick up enough momentum of the make a bigger move. After all, most traders are coming back from summer break right now, and markets could start to make more substantial moves. All things being equal, I think one of the important factors to consider is to know when we finally do break out of this range. The next couple of days could be very noisy, but given enough time we will eventually see the trend sort itself out for the fall season.

Because of this, I will be paying close attention for the next day or 2, but eventually will be putting money to work in whichever way we break. If we break to the upside, then we could see a move toward the 1.12 level. On the other hand, we break down below the 1.0750 level, then it opens up a move down to the 1.05 level underneath. Ultimately, I think we continue to see a lot of volatility, but sooner or later we have to make that decision.

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