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

EUR/USD Forecast Video for 20.02.23

Euro vs US Dollar Weekly Technical Analysis

The Euro has initially rallied during the week but gave back gains as we continue to see a lot of negativity out there. That being said, I think we’ve got a situation where the US dollar should continue to strengthen over the longer-term, but quite frankly I think we get a situation where we have to determine whether or not the risk appetite around the world continues, or if it starts to falter like we have seen as of late.

If it starts to falter, that helps the US dollar, and therefore I think you got a situation where the market could continue to go lower. That being said, the 50-Week EMA could offer a bit of support, especially as it is hanging around the 1.06 level. With that being the case, I think you also have to look at this through the prism of whether or not we can break down below it. If we do, then the 1.05 level is the next target.

That being said, you should also pay close attention to the idea that we will continue to be very negative, so therefore I think rallies continue to get sold into. With this being the case, you have a situation where the market will continue to see a lot of fear come into the picture, and therefore I think a lot of people will jump in and start to freak out any time they get an opportunity to. On the other hand, if we turn around and take out the top of the candlestick, then it opens up the possibility of the Euro going to the 1.10 level.

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