EUR/USD Weekly Forecast – Euro Gives Up Early Gains for the Week

EUR/USD Forecast Video for 30.01.23

Euro vs US Dollar Weekly Technical Analysis

The Euro has rallied during the early part of the week, but has given back quite a bit of the gains to show signs of hesitation. The market is hanging around the 50% Fibonacci level, and the 1.09 level, an area that has been important previously. All things being equal, this is an area where you would expect to see sellers come back into the market, so I do think that we are at a very interesting point on the chart because the rally all the way up to the 1.09 level has been a bit overdone. At this point, simple gravity could come back into the picture and could send this market much lower.

The 1.06 level underneath is a potential target if we break down, and perhaps reaching down to the 50-Week EMA, which sits just below there. Whether or not we get some type of massive selloff is a completely different question, but I do think that a pullback certainly is more or less necessary in order to find buyers to push this market higher. Yes, we could break above the top of the shooting star for the week and that would obviously be bullish, but at this point I’m a bit concerned about the momentum.

You can see that we fell rather steadily and in what I thought was a rather steep angle. However, the bounce has been even more aggressive, meaning that the markets will more likely than not have to deal with the overbought condition. Ultimately, I think this is a situation where we need to take a pause, so I think we are in the midst of seeing that present itself.

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