EUR/USD Weekly Forecast – Euro Continues to See a Lot of Noisy Behavior

EUR/USD Forecast Video for 26.06.23

Euro vs US Dollar Weekly Technical Analysis

The euro has been noisy as of late, and it does make a certain amount of sense that we continue to see a lot of volatility as we are between the crucial 200-Week EMA above and the 50-Week EMA below. The candlestick itself shows quite a bit hesitation, as the previous week was so bullish, we are now trying to figure out what to do going forward. After all, the European Union seems to be entering some type of recession, while at the same time we have the inflationary concerns worldwide. When you look at this chart, you can see just how noisy things have been as of late, and it does look like we are trying to form some type of “rising wedge.” Because of this, we could get a correction, but the 200-Week EMA above is a major resistance barrier.

All things being equal, I think we are trying to figure out whether or not the Federal Reserve will continue to tighten, and the fact that Jerome Powell continues to reiterate that argument is something that traders should be paying attention to. With this, I do think that there is some downside risk, but whether or not we can truly break down remains to be seen. I think there are so many different people out there pushing so many different narratives that the market is going to continue to struggle. Ultimately, position sizing will be crucial, but I think this is more or less going to be a scenario where you’re probably better off trading more of a range bound short-term chart than anything else.

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