EUR/USD Weekly Price Forecast – Euro Recovers for the Week

EUR/USD Forecast Video for 10.07.23

Euro vs US Dollar Weekly Technical Analysis

The euro has initially pulled back a bit during the trading week, only to show signs of life. The candlestick ended up forming a bit of a hammer, and therefore looks like we are going to continue to trade in this overall range. All things being equal, the 1.10 level above has offered a little bit of resistance, but if we were to break above there, then we have to deal with the 200-Week EMA, near the 1.11 level.

On the other hand, if we were to break down below the last couple of candlesticks, it’s possible that we could drop down to the 1.08 level, maybe even down to the 50-Week EMA. All things being equal, this is a market that is going to continue to see a lot of noise due to the fact that both central banks are relatively tight, and therefore people are trying to read what they will do in the future via statements and innuendo.

It is probably also worth noting that we are between the 200-Week EMA and the 50-Week EMA, so that means we more likely than not will technical traders as well. In general, this is a situation where we are trying to figure out where we are going to go for a longer-term move, and therefore I think we have quite a bit of volatility ahead of us. I think short-term trading is probably more likely than not going to be the case, so longer-term traders will probably have to look at the market from a short-term stance, at least until we can break out of one of the moving averages for a bigger move.

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