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EUR/USD Weekly Forecast – Euro Continues to Fight Near 50-Week EMA

By:
Christopher Lewis
Published: Mar 10, 2023, 18:12 UTC

The Euro initially fell during the trading week, but turned around to show signs of life yet again at the 50-Week EMA.

Euro, FX Empire

In this article:

EUR/USD Forecast Video for 13.03.23

Euro vs US Dollar Weekly Technical Analysis

The Euro has initially fallen during the week, only to turn around to show signs of life again. The 50-Week EMA seems to be attracting a lot of attention, so therefore it’s not a huge surprise to see that we have turned around. Furthermore, we also had the non-Farm Payroll announcement come out on Friday that had people hoping that perhaps the shrinking wage inflation might have the Federal Reserve rethinking its rate of change. That of course is absolute nonsense, but in the short term it seems to be that’s the narrative that Wall Street is playing.

If we can break higher, there should be a significant amount of resistance near the 1.07 level, and then again at the 1.08 level. On the downside, if we were to break down below the bottom of the candlesticks for the past couple of weeks, then I think you have a situation where you could easily see this market drop down to the 1.03 level, followed by parity. Keep in mind that parity is going to attract a lot of headlines, and therefore people will be very interested in that region. I think we will have a major fight if we do get down to that area, and whether or not we can break down below there is a completely open question at this point.

At this juncture, I think the only thing you can probably count on is going to be more volatility, which is something that quite frankly I think a lot of traders are sick of. However, until we get some type of certainty when it comes to trading conditions and the economic outlook, this is a beast that we have to deal with.

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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