EUR/USD Forecast Video for 28.03.23
Euro vs US Dollar Technical Analysis
The Euro initially fell during the trading session on Monday but seems as if it is finding enough support underneath to keep the market somewhat afloat. That being said, there is a significant amount of resistance above that is closer to the 1.09 level, where we had seen a lot of selling pressure in the past, and on Thursday of last week had even formed a shooting star based upon that market memory.
In this environment, I do think that we remain somewhat range bound, but I’m still paying close attention to selling opportunities as the recent negativity in the Euro does suggest that perhaps we are getting ready to see some type of turnaround. On the other hand, if we were to break above the recent high, then obviously the Euro could really start to take off. In general, this is a situation that would be extraordinarily bullish, because it will have attacked the same area multiple times and finally succeeded.
Underneath, the 50-Day EMA is sitting just below the 1.07 level, so therefore it’s worth paying close attention to that area. Underneath there, then the Euro has support and at the 1.06 level, and then the 200-Day EMA. Ultimately, this is a market that I think would have trouble breaking down below there, but if it does it would be more or less a situation where you would have the floor fall out of this market, and we could see a big move to the downside. In that scenario, I expect that the Euro could go all the way down to the 1.03 level, maybe even down to the parity level given enough time.
Pay attention to the interest rate situation in the United States, because if those rates continue to climb that will make the US dollar more attractive. Furthermore, it’s very likely that we could see a lot of fear out there, and that generally makes the US dollar more attractive anyway, as it is considered to be a safety currency. In general, this is a situation that I do think is worth monitoring, because this pair is a great barometer as to how the US dollar will behave against other major currencies.
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This article was originally posted on FX Empire