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EUR/USD Forecast – Euro Continues to Pressure the Upside

EUR/USD Forecast Video for 04.05.23

Euro vs US Dollar Technical Analysis

The Euro has rallied quite nicely during the trading session on Wednesday, as we continue to see a lot of noisy behavior. That being said, we have to deal with markets that will continue to be very noisy as we wait for the Federal Reserve and of course the ECB over the next couple of days. At this point, it looks like the euro continues to see a lot of upward pressure, but at the end of the day it’s very difficult to imagine a scenario where the market is going to simply take off to the upside without some type of input from the Federal Reserve. That being said, you can almost count on Jerome Powell say something to give Wall Street hope to start shorting the dollar even further, as he does tend to mess up quite frequently when it comes to speeches.

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Underneath, we have the 1.09 level as support, and that is an area that we need to pay close attention to. This is especially true now that the 50-Day EMA is in the same neighborhood. That obviously will be followed very closely by traders from a technical analysis standpoint, and therefore I think you need to be very cautious about trying to short this market, at least until we close below that level on a daily chart. If that were to happen, it would obviously be a very negative turn of events and could send this market reeling. On the other hand, if we break above the 1.11 level, then it’s likely that the Euro will continue to go much higher, perhaps reaching the 1.1250 level over the next couple of days.

Speaking of the next couple of days, both the central banks meeting and announcing interest rate decisions as well as monetary policy statements will almost certainly make this a very noisy and dangerous currency pair to be involved in. Keep your position size reasonable, and by all means use common sense when it comes to stoploss orders.

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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