EUR/USD Forecast – Euro Has Choppy Tuesday

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EUR/USD Forecast Video for 03.05.23

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the trading session on Tuesday, as we continue to see a lot of noisy and choppy trading. This makes a lot of sense, considering that this was the day before the Federal Reserve meeting, and 2 days before the European Central Bank meeting. In other words, this will be “Ground Zero” for a bulk of the volatility in the Forex markets over the next couple of days, so it does make a lot of sense that we would see back and forth noisy behavior.

Ultimately, I think the 50-Day EMA might be a technically important indicator that could offer a bit of dynamic support. Because of this, the market is likely to continue to see a lot of noisy behavior but should see plenty of buyers underneath on dips unless of course the Federal Reserve somehow manages to shock the market, or perhaps if the ECB does. That being said, it’s very likely that the markets will see interest rate hikes out of both central banks, and any surprise that comes across the wires will be due to the press conference more than anything else.

All things being equal, this is a market that has been very bullish, but at this point it looks like we are trying to figure out whether or not we are going to find enough momentum to continue going higher, or whether or not we have finally peaked. All things being equal, this is a situation where I think you have the questions being answered this week, because quite frankly we have been coiling for some time, and markets cannot go nowhere forever. Ultimately, the inertia will be released, and the market will make a bigger move. That being said, this is a situation where we see an impulsive candlestick as a potential buying or selling opportunity. Nonetheless, this is a market that needs to lead the way before you follow it, because trying to “front run” both of the central banks could be a massive risk to your account, as both of the next couple of days will be volatile, perhaps in opposite directions as well.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire