EUR/USD Weekly Forecast – Euro Breaks Down

EUR/USD Forecast Video for 11.09.23

Euro vs US Dollar Weekly Technical Analysis

The euro initially tried to rally during the trading week, but then sold off rather drastically. Traders are now concerned about the European Union economy, and whether or not it is going to continue to show signs of weakness. It certainly looks as if traders are starting to think that and now that we have broken through the bottom of a major channel I think that short-term rallies will more likely than not offer selling opportunities. I think that the US dollar is about to flex its muscles, and you can see that the latest move lower has been rather drastically negative. Because of this, we could get a short-term rally, but the 50-Week EMA is sitting at the top of the past candlestick, and therefore lines up nicely with the bottom of the overall channel. That could be a major resistance barrier.

That being said, the US dollar continues to enjoy high interest rates, which is in sharp contrast with many other currencies around the world, including the euro. All things being equal, this is a market that I think continues to see a lot of “fade the rally” attitude, and if we can break down below the 1.05 level, then it’s likely that the market could go down to the 1.02 level underneath, which is then followed by the parity level.

Now that more money is flowing into the markets, we could see a huge move, but we will have to wait and see how it plays out. If we were to turn around and break above the inverted hammer from the previous week, that would be a huge statement of bullish pressure, but I just don’t see that happening at the moment.

For a look at all of today’s economic events, check out our economic calendar.