EUR/USD Forecast Video for 23.05.23
Euro vs US Dollar Technical Analysis
The euro has rallied a bit during the trading session on Monday, as we continue to see a lot of noisy behavior. That being said, the market had sold off quite drastically as of late, so the question now is whether or not that was a short-term pullback or if it was something a little bit more important. Ultimately, the 50-Day EMA sits near the 1.09 level, which could offer a certain amount of resistance. If the market does reach toward the area, we could see some exhaustion coming into the market. On the other hand, if we were to break down below here, then it’s likely that the market could go down to the 200-Day EMA which a lot of traders pay close attention to as a long-term indicator.
If we were to turn around and break back above the 50-Day EMA, then it’s very possible that the euro could go looking to the 1.11 level. The market continues to be very noisy, and a lot of people out there are looking to jump into this market due to the fact that the euro could end up offering a bit of value in this region. However, we have a lot of questions out there when it comes to where we are going next, and of course, whether or not there is a significant amount of growth to get things rolling. With this being said, the market continues to be very noisy, so it’ll be interesting to see how this plays out. With this, I do think that it still remains a little bit of a “buy on the dip” market, but that doesn’t necessarily mean we are going to go straight up, or that we will even continue to see that.
The market is currently between the 50-Day EMA and the 200-Day EMA. This is typically a sign of a market that’s trying to make a bigger move, so by all means, you need to pay close attention to the next impulsive candlestick, because it may give us a bit of a “heads up” as to where we are going longer term.
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This article was originally posted on FX Empire