EUR/USD Weekly Forecast – Euro Shoot Straight Up in the Air

EUR/USD Forecast Video for 19.06.23

Euro vs US Dollar Weekly Technical Analysis

The euro has rallied rather significantly during the course of the trading week to threaten the 1.10 level. The size of the candlestick is rather impressive, and it does suggest that perhaps we are going to test the 200-Week EMA above, closer to the 1.11 level. Ultimately, the market breaking above there is an extraordinarily bullish sign and could send the Euro looking toward the 1.15 level above.

Underneath, we have the 1.08 level underneath, with the 50-Week EMA right around that same area, and of course the uptrend line. With this being said, the market is likely to see a lot of noisy behavior, and I would not be surprised at all to see the euro pulled back just a bit. However, it looks like traders are focusing on the fact that the Federal Reserve skipped a potential interest rate hike this week, while the ECB of course did raise their rates. The interest rate differential still favors the US slightly, but at this point in time a lot of people are looking at the possibility of the Federal Reserve cutting in the future. While I believe that’s absolute nonsense, it’s what the market believes.

Having said that, it also comes down to which part of the market you talk about. There are better odds of an interest rate hike in July, so knowing that it’s very likely that we continue to bang around in this area, but probably more of the same as we have seen recently, meaning that there is a general upward tilt to everything in this pair, and therefore I think it’s probably going to be noisy to say the least.

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