EUR/USD Weekly Forecast – Euro Has a Choppy Week Again
EUR/USD Forecast Video for 20.03.23
Euro vs US Dollar Weekly Technical Analysis
The Euro has gone back and forth during the course of the trading week to show signs of confusion, as we are hanging around the 1.06 level. This is an area that I think will continue to be thought of as a backup for price, as we have gone back and forth, and of course the 50-Week EMA sits just below there. If we were to break down below the bottom of the candlestick for the week, then we could continue to plunge, perhaps go down to the 1.03 level after that. Looking at the recent candlesticks, you can also make an argument that we are forming an expanding megaphone pattern, which shows that we are ready to break somewhere.
Ultimately, this is a market that I think continues to wait upon the Federal Reserve decision next week, as it will give us a bit of a “heads-up” as to where the interest rates may go. I think there is a lot of indecision between now and then, and therefore we have a situation where it’s going to be short term range bound between now and then. After that, it’s going to come down to not only the interest rate hike or lack of, but also the statement coming out of the Federal Reserve.
As things stand right now, I think the markets are coiling up for a bigger move, and it’s simply a matter of seeing which way we break and then following it. I believe that a lot of momentum is about to be released into the marketplace, and the entire world would be watching Jerome Powell for their cues.
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