EUR/USD Weekly Forecast – Euro Bounces From Big Figure

EUR/USD Forecast Video for 02.10.23

Euro vs US Dollar Weekly Technical Analysis

The euro fell rather hard during the trading week, but it also has seen quite a bit of a pushback at the 1.05 level. At this point, the market looks as if it is trying to form some type of supportive candlestick, but at the same time, there’s no real fundamental reason for the euro to take off to the upside. After all, the European Union is likely to end up being a bit of a mess going forward, as recession looms. The Federal Reserve on the other hand is very tight with its monetary policy, so I do think that it is probably only a matter of time before this market sells off again.

If we break down below the 1.05 level, then it’s likely that the euro will go looking to the 1.0250 level, and then eventually the parity level. I do think that happens given enough time, but we may need some type of short-term rally between now and then to get things kicked off. I will be fading short-term rallies that show signs of exhaustion, which may or may not appear on the weekly chart. The 50-Week EMA is near the 1.0750 level and could be a bit of a barrier in and of itself.

As things stand right now, I don’t have any interest in buying the euro, and I think that the euro is going to continue to suffer at the hands of not only the US dollar, but some other currencies as well. However, if we were to break above that 50-Week EMA, then I will reassess the entire fundamental picture when it comes to this currency.

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