EUR/USD Weekly Forecast – Euro Gets Turned Around

EUR/USD Forecast Video for 06.02.23

Euro vs US Dollar Weekly Technical Analysis

The Euro has rallied early during the week but gave back gains as we ended up forming a massive shooting star. Ultimately, the US dollar got a huge boost due to the jobs number coming out at 518,004 last month. Looking at this chart, it certainly is interesting that we are right at the 50% Fibonacci were to level, and it’s also interesting that the 200-Week EMA is starting to come into the scenario, so ultimately, I think there is plenty of resistance above that could come into the picture and cause headaches for people.

If we break down below the bottom of the candlestick, then I think it’s very likely that the Euro goes looking to the 1.06 level, an area that has been important  more than once, and also where we currently find the 50-Week EMA. I do think that we are getting close to the end of this bear market rally, but if we were to break above the top of the candlestick for the week, then you have to assume that the Euro continues to go higher, perhaps looking to reach the 1.12 level.

This is a market that continues to be noisy and of course erratic, as there are so many questions to ask about economic growth, the future of trade between the United States and Europe, and of course the fact that China is reopening. In other words, we have plenty of noisy factors out there that come into the picture and cause headaches, so I would anticipate that we will have more noise than anything else, and therefore you need to look at this through the prism of keeping your position size small until we make a significant impulsive candlestick.

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