EUR/USD Forecast Video for 10.03.23
Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during trading on Thursday but gave back early gains to show signs of hesitation. Ultimately, this is a market that looks as if it is paying close attention to the 200-Day EMA, as it has offered support for a couple of days in a row. Whether or not that holds longer-term remains to be seen, because quite frankly with Jerome Powell suggesting in front of Congress that interest rates in America will continue to climb and perhaps even at a faster pace than originally thought, it does make a certain amount of sense that the US dollar might pick up a bit of momentum. Because of this, one should pay close attention to whether or not we can break down below the 1.05 level underneath, because it is what looks to be the bottom of a larger support level including the 200-Day EMA.
On the other hand, we could very well bounce at this point and go looking to reach the 50-Day EMA above, which sits near the 1.0650 level. The market does tend to get very choppy when it is trading between these 2 moving averages, so volatility should be expected. Nonetheless, it’s also worth noting that this is a market that previously had bounced rather significantly all the way to the 50% Fibonacci level and has since fallen somewhat significantly. Furthermore, it’s also worth noting that the market has seen a couple of major selloff between that peak and current trading, so it very likely means that we are in the midst of breaking back down for a bigger move to the downside.
If we do break down below the 1.05 level, I would be looking at the 1.03 level as the next potential target, followed by parity. Parity will obviously attract a lot of attention as it makes good financial headlines. It is also an area where one would have to expect a lot of options barriers being erected, and therefore it might be difficult to break through. Either way, I do think that the market is going to try to get down there given enough time, so I believe in selling rallies.
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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-sits-140039670.html