EUR/USD Weekly Forecast – Euro Touches 200-Week EMA

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EUR/USD Forecast Video for 01.05.23

Euro vs US Dollar Weekly Technical Analysis

The Euro has spent most of the week trying to rally, but it struggled at the 200-Week EMA, that’s typically a very important indicator, so it will be interesting to see how this plays out. It’s also worth noting that the candlestick is starting to form a bit of a shooting star, and that of course is something that a lot of people will be paying close attention to. If we break down below the bottom of the candlestick, that’s also a signal that the sellers are starting to step back in. However, it’s worth noting that the previous candlestick ended up forming a bit of a hammer, so it does look a lot like we could see more consolidation than anything else in this area.

On the other hand, if we were to break above the top of the candlestick for this past week, then it opens up the possibility of the euro reaching toward the 1.1250 level. It’s worth noting that Mayday is Monday, so it will more likely than not be a very quiet session but at the end of the week, we should have quite a bit of information coming out of the Federal Reserve, which will have a lot to do with where we go next anyway.

While the ECB is already known to be hawkish, the question is whether or not the Federal Reserve is going to be hawkish also. I think at this point it’s very unlikely that the market will continue to have to argue back and forth between the 2 central banks, and Wednesday could cause a lot of volatility as Jerome Powell is almost certainly going to reiterate his hawkish attitude.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire