EUR/USD Weekly Forecast – Euro Continues to Look a Bit Confused

EUR/USD Forecast Video for 15-01-2024

Euro vs US Dollar Weekly Technical Analysis

The Euro has gone back and forth during the course of the trading week, showing the 1.10 level above as resistance. The 200-week EMA sits right there as well, and if we can break above both those levels, then I think it allows the Euro to go looking to the 1.1150 level. On the other hand, if we break down below the bottom of the weekly candlestick from the previous week, then the euro could drop down to the 50 week EMA, which is closer to the 1.08 level.

That being said, I think it’s an interesting dichotomy we find ourselves in right now because while everybody expects the Federal Reserve to cut interest rates a couple of times this year, the ECB still hasn’t signified its willingness to do the same despite the fact that Germany is heading into a recession. So maybe the markets are starting to sniff out the idea that perhaps the ECB is going to have to follow suit. And if that’s the case, we’re going to end up being range bound.

That’s essentially all we’ve seen so far. And right now, I just don’t see it changing, at least not without some type of external catalyst. With that being said, I think you are relegated to trading short-term charts at the moment, as longer-term traders will need to see a significant amount of momentum into the market in order to really put money to work with any type of faith.

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