EUR/USD Weekly Forecast – Euro Stalls for the Week

EUR/USD Forecast Video for 23.01.23

Euro vs US Dollar Weekly Technical Analysis

The Euro has gone back and forth during the trading week, showing signs of hesitation in the 1.08 vicinity. In fact, it seems like the 1.08 level is major resistance that the market cannot get beyond. Because of this, when you look at the daily chart you’ll notice that there are a lot of wicks just above, and as long as that is the case, it shows that there is a real fight going on in the markets. I do believe that we are probably going to see a bit of a pullback, which does make a certain amount of sense considering just how overextended we are at the moment. The 1.06 level could be a natural support level, so I’ll be paying close attention to it, especially as the 50-Day EMA sits right there as well.

The size of the candlestick is rather lackluster, but considering just how bullish the weekly candle was before, it makes sense as well. If we break above the 1.09 level, then I think the Euro is almost certainly can take a looking to reach the 1.1050 area, and then perhaps even challenge the 200-Week EMA. A pullback at this point does not necessarily mean that we are going to start falling precipitously, but if we were to take out the 1.06 level you would have to stand up and pay attention to this market.

The US dollar will probably lead the way, and because of this I think a lot of the risk appetite around the world will probably be the main driver in general. The market looks as if it’s going to offer more volatility.

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