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

EUR/USD Forecast Video for 23.10.23

Euro vs US Dollar Weekly Technical Analysis

The euro has rallied a bit during the trading week, as we now look as if we are ready to threaten the 1.06 level. The size of the candlestick is somewhat impressive, but at the end of the day the market is still very much in the same range and has been in for a while. The last couple of weeks have seemingly found the 1.06 level as a bit of a magnet for price, perhaps being “fair value.” The 1.05 level underneath is supported, and if we can break down below there, then it’s likely that we will continue to see more traders jump into this market in favor of the US dollar.

If we can break above the top of the inverted hammer from the previous week, that could be very bullish, and we may see the beginning of a significant recovery. That being said, the interest rate differential continues to favor the US dollar, and of course the European Union is getting ready to head into a nasty recession. Beyond that, the Europeans are also going to have to worry about energy this winter, so there are a whole host of reasons to think that the euro is probably not something you want to own.

It’s very likely that the market is going to continue to see the ECB as being more likely to loosen monetary policy than the Federal Reserve, so I think the market is also trying to front-run that move as well. All things being equal, this is a market that I do think eventually breaks down below the 1.05 level, but it may bounce between now and then.

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