EUR/USD Forecast – Euro Gives Up Early Gains
EUR/USD Forecast Video for 11.05.23
Euro vs US Dollar Technical Analysis
The Euro initially tried to rally a bit during the trading session on Wednesday but gave a gains rather quickly as we continue to see noisy behavior overall. The 50-Day EMA sits near the 1.09 level, and of course as the world waits for CPI figures, there is a little bit of hesitation to bet against the US dollar. At the moment, it’s worth noting that the inflation situation in the United States continues to be very hot, and therefore tight monetary policy will continue to be the way forward for the Federal Reserve.
If the market were to break down below the 50-Day EMA, then it’s possible that we could go down to the 1.07 level underneath, which is near the 200-Day EMA, it makes a certain amount of sense that there should be supported in that area, and it could end up being a target if we break down. That being said, it would obviously be a fairly significant move on behalf of the US dollar, we would probably see the US dollar strengthen against most currencies, not just the euro.
On the other hand, if we turn around and break above the top of the range for the day, then it’s likely that the euro will go looking to the 1.11 level above, which is the top of the overall range that you have been in for the last several weeks. Remember, the market shot straight up in the air, so it should not be a huge surprise at all to see a bit of consolidation after that type of move to work off some of the excess momentum.
Ultimately, this is a situation where we continue to see a lot of noise regardless of what happens next, so make sure to protect your account and use prudent money management. That being said, we will eventually have to make some type of decision and break out of this small range that we have been in over the last couple of weeks. Ultimately, the market is holding its breath to see what is going to happen with both of the central banks, both of which profess to be tight with monetary policy.
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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