EUR/USD Weekly Forecast – Euro Continues to Look Sideways Overall

EUR/USD Forecast Video for 29-01-2024

Euro vs US Dollar Weekly Technical Analysis

The Euro has gone back and forth during the course of the trading week to test the 50-week EMA, but then turned around to show signs of strength. All things being equal, this is a market that I think you need to continue to pay close attention to because it does give us an idea as to where the US dollar may go and that of course has a major influence on what happens next with most financial markets. After all, if you know where the US dollar goes, you generally know where other things are going to move.

Now, that being said, we are still stuck between the 1.10 level above and the 1.0750 level underneath and we are essentially in the middle of that range, so it does make a certain amount of sense that we are just chopping along. I think at this point in time, it’s worth paying close attention to the European Central Bank and of course the Federal Reserve. The Federal Reserve has already suggested that it is going to cut rates in 2024, but the ECB has yet to say that.

All things being equal, the ECB is going to have to pay close attention to Germany as it is heading into a recession, and I think they cut as well and that may lead to a somewhat sideways year. In fact, I think that’s probably going to be the case in a lot of the major markets, and the EUR/USD pair is typically a good indicator of risk appetite, which of course transfers into other financial assets as well.

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