EUR/USD Forecast – Euro Bounces Into the Weekend
EUR/USD Forecast Video for 22.05.23
Euro vs US Dollar Technical Analysis
The euro has bounced a bit during the trading session on Friday, as it looks like we are finally going to get a little bit of value hunting at this point. After all, the euro fell rather hard over the last several sessions, and it looks like we will continue to see the market behave in a manner that suggests we have gotten a bit ahead of our own skis as it were. With this being the case, the market will have to pay close attention to the 50-Day EMA above, which is currently just below the 1.09 level and dropping. Because of the recent pullback, there will be a lot of questions asked to whether or not this is just a pullback in a continuing uptrend, or if it is something a little bit more important.
The next couple of sessions could be crucial, and depending on how we close out the week, the weekly candlestick itself could tell a story or two. As the market is currently between the 50-Day EMA and the 200-Day EMA indicators, it does suggest that we don’t really have clarity.
Keep in mind that both central banks are rather tight with their monetary policy, so a bit of indecision does make quite a bit of sense. The market will continue to be very noisy, but that makes a lot of sense considering that there is so much out there in the way of uncertainty. Remember, the US dollar is considered to be a safety currency, so if we do in fact continue to see the economic situation unwind a bit, that does favor the greenback, just as if we start to see traders suggest that they have more risk appetite in their mind, the euro will benefit.
With that all being said, expect a lot of noisy and choppy behavior, and therefore it’s going to be difficult to hang on to major positions. With this being said, the market is likely to continue to be erratic, so you will need to be cautious with your position sizing as long as we have so many moving pieces out there. With that, I think we’ve got the possibility of settling into a range before it is all said and done, but watch the moving averages, they may tell the story.
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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