EUR/USD Weekly Forecast – Euro Continues to Struggle With Upward Momentum

EUR/USD Forecast Video for 28.11.22

Euro vs US Dollar Weekly Technical Analysis

The Euro has been all over the place during the course of the trading week, as we continue to see a lot of noise right around the 1.04 level. What I find interesting is that the previous week was a shooting star, and this one is a neutral candlestick. Are we running out of momentum? That of course is going to be the question going forward.

This nonsense about the Federal Reserve suddenly becoming a loose central bank may be running out of momentum, which will be potentially driven by the Friday jobs number, so I do think that there is a real possibility that we see a significant pullback. On the other hand, if we were to break above the 1.05 level, at that point you would have to assume that the Euro has more of a recovery ahead.

Either way, a lot of this is going to come down to what people believe the Federal Reserve is going to do, and of course it’s statement in December. A lot of traders out there will be trying to square their positions sometime toward the end of the year, so be aware of the fact that we are going to see even more volatility down the road. Either way, I don’t like buying this pair until we get well above 1.05. At that point, we could have a relatively big move, and but we need to have the Federal Reserve either pivot or at least sound like they are getting close to doing so in order to make that happen anytime soon.

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