EUR/USD Forecast Video for 03.02.23
Euro vs US Dollar Technical Analysis
The Euro initially shot higher during the trading session on Thursday but gave back gains rather quickly. By doing so, it shows that we are probably a little overdone, but it does make a certain amount of sense that the 1.10 level offered some resistance as well. Ultimately, I think this is a situation where you will have to pay close attention, because we are at a major psychological level.
All things being equal, we probably need to work off some of the froth from the previous session but it doesn’t necessarily mean that we are going to have a major turnaround. I think at this point, it’s obvious that the US dollar is still on its back foot, despite the fact that I do believe eventually this turns around. Nonetheless, what I believe is completely irrelevant, compared to what the market does. If we break above the top of the candlestick for the trading session then I believe that the Euro is going to go looking for the 1.12 level.
Ultimately, this is a market that I think has a lot of work at of it, because we have been grinding steadily higher but at the same time, the Federal Reserve swears up and down it’s going to keep its monetary policy tighter for longer. Unfortunately for the Federal Reserve, it seems like it’s lost its credibility quite some time ago, and now is probably a bit late to start acting responsibly. The greed of the Federal Reserve governors that had inflated the bubble while they day traded has completely wrecked the central bank and its effect on the markets.
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/eur-usd-forecast-euro-gives-135244506.html