EUR/USD Forecast Video for 21.04.23
Euro vs US Dollar Technical Analysis
The Euro has rallied slightly during the trading session on Thursday, as it looks like we are going to continue to see a lot of choppy and noisy behavior. That being said, it’s probably worth being very cautious with your position size considering the Friday features a ton of PMI numbers coming out of the European Union, which obviously could have a major influence on the Euro itself.
Furthermore, we have to also pay attention to the overall situation when it comes to the global economy, because we could get a run toward the US dollar if there is some type of fear out there that prevails in the market. Nonetheless, this is a pair that has been bullish for a while but also seems to be struggling with the idea of ripping past the 1.10 level. There certainly has been a bit of trouble here recently, so that is something worth paying close attention to. If we were to break down below the 1.08 level, that could change a lot of things, as the 50-Day EMA sits right there. Breaking down below that would of course be quite a bit more negative than a simple pullback, and at that point in time I think things could change pretty quickly.
At this point, I think the Euro is probably going to continue to attract a certain amount of inflow, due to the fact that the European Central Bank is decidedly hawkish, and the Federal Reserve is getting closer to staying put. Nonetheless, money is going to be tight for some time, and that will obviously have a major influence on what we see next.
If we do enter some type of global recession, that would probably favor the US dollar, but that might be more of a longer-term call. Obviously, in the short term it seems as if everybody is doing what they can to sell off the US dollar, but this Friday could be very important as this PMI numbers could be the first sign that the monetary policy coming out of the ECB is starting to work. At this point, you have to think that short-term dips are probably going to be short-term buying opportunities.
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-133137630.html