EUR/USD Forecast Video for 21.02.23
Euro vs US Dollar Technical Analysis
The Euro has done very little during the trading session on Monday, as we continue to see a lot of hesitation around the 50-Day EMA. This indicator is flattening out, so the question now is whether or not it’s going to offer support, or if we are simply going to ignore it? It’s worth noting that the 1.06 level underneath it is a large, round, psychologically significant figure, and it is also the 38.2% Fibonacci level from the bigger downtrend. While we have blown through there, and pulled back to the 50% Fibonacci level, quite often you will see these levels offer small bumps along the way. The 200-Day EMA sitting underneath there also comes in the picture as well.
It is worth noting that the Friday candlestick was a hammer, but that doesn’t necessarily mean that it has to hold. It just shows that there was a bit of a reaction to that area. You should keep in mind that there is a potential support level down to the 1.05 level, which just happens to be where the 200-Day EMA resides. Anything below there then opens up the possibility of a move much lower, perhaps down to the parity level over the longer term.
While the European Central Bank continues to espouse that it is going to be raising interest rates, the reality is that the expectations for tighter financial conditions in the United States going forward has found itself back into the psyche of the market again, and therefore it does make a certain amount of sense that the greenback continues to strengthen. This will be especially true against the Euro, as the economic situation in the European Union is much weaker than the United States.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/eur-usd-forecast-euro-continues-133209012.html