EUR/USD Forecast Video for 24.05.23
Euro vs US Dollar Technical Analysis
The euro has bounced a bit after initially falling on Tuesday to show signs of hesitation. Ultimately, this market continues to see a lot of noisy behavior, as the European PMI numbers came out weaker than anticipated. However, we have the US numbers coming out a little bit later, and if those are lower as well, then it will be essentially a “no fault, no foul” type of situation. All things being equal, this is a market that continues to be very noisy, but when I look at this chart right now, it looks as if we see a little bit of support near the 1.0750 level.
If we were to break down below the 1.0750 level, then it’s possible that we could then drop down to the 200-Day EMA, which is near the 1.0680 level, and is rising. If we can break down below there, then it’s possible that we could go down to the 1.05 level which is an area that has been a significant area of support. All things being equal, this is a market that I think continues to see a lot of noisy behavior, as we try to figure out whether the situation will continue to see a bounce, or if we are going to break things down at this point. Regardless, I think this is a situation that is going to continue to be very noisy, and I do think that we probably have a situation where we need to figure out where the risk appetite of traders around the world is going to be heading.
If we were to turn around and take out the 50-Day EMA to the upside, then it would open up the possibility of a move to the 1.11 level above. Breaking above that region, then it would be more of a “buy-and-hold” type of situation. Regardless, I think this market probably has a lot of volatility ahead of it. Therefore you would need to be very cautious and recognize that you will have to deal with quite a bit of choppy behavior going forward before we get some clarity.
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This article was originally posted on FX Empire