EUR/USD Weekly Forecast – Euro Has a Tough Week

EUR/USD Forecast Video for 31.07.23

Euro vs US Dollar Weekly Technical Analysis

The euro fell rather significantly during the course of the week, dipping down below the 1.10 level before turning around on Friday. With this, it looks like we are probably going to continue to see a lot of noisy behavior, but we are very much in a bit of an uptrend, therefore I think it’s probably only a matter of time before we try to turn things back around. The 200-Week EMA sits right around the 1.11 level, and it suggests that if we can break above there, the market could go much higher.

Keep in mind that the big question of the day right now is whether or not the Federal Reserve will continue to be tight with monetary policy, or if things will change. That being said, the market is likely to continue to hope for a loose Federal Reserve, and that of course will have a certain amount of negativity against the US dollar. However, this is a very fluid situation, and therefore could change at the drop of a hat. If we were to break down below the 1.09 level, then it’s likely that we could drop down to the 50-Week EMA. On the other hand, if we were to turn around and strengthen, we could go all the way to the 1.1250 level.

The 1.1250 level above being broken would kick this market off for a move to the 1.15 handle. That being said, the last couple of weeks have been pretty nasty, but we have touched the bottom of the impulsive candlestick that sent the market back to the 1.1250 level, and therefore it looks like the uptrend is trying to stabilize itself.

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