EUR/USD Forecast – Euro Rallies Towards Resistance

EUR/USD Forecast Video for 29.03.23

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit against the US dollar during the trading session on Tuesday, as we see quite a bit of noise in the Forex markets continue. The market is breaking above the 1.08 level but is starting to approach a serious area of resistance. The market will continue to be very noisy, and I do think that is going to be difficult to break above this area anytime soon. The market will see resistance all the way to the 1.10 level, a large, round, psychologically significant figure that caused quite a bit of selling previously.

Looking at the chart, I think you are probably best served looking for signs of exhaustion to begin selling, but right now it looks like the market is trying to find its footing and determine some type of short term consolidation area. Any exhaustion that appears will more likely than not would be something that a lot of people will jump on. Keep in mind that a lot of the noise that you will see will be about the interest rate differential, and there’s a huge debate right now going on as to whether or not the Federal Reserve and the European Central Bank can remain this hawkish going forward. Despite the banking crisis, it’s worth noting that the Bank of England suggested earlier in the day that it was going to go ahead and fight inflation, not worry so much about the banks. It’s possible that we would see a run towards safety if we continued to see banking issues as well, and that of course means that the United States dollar would be desirable.

The 50-Day EMA is currently sitting just below the 1.07 level, so it’s very likely that we would see a certain amount of dynamic support returned to the market. Underneath there, then we have the 1.06 level, followed by the 200-Day EMA which sits right around the crucial 1.05 handle, an area that would open up massive selling if we were to break down below it. In that environment, the US dollar would probably spike against most other currencies 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

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