EUR/USD Weekly Forecast – Euro Has Choppy Week Again

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EUR/USD Forecast Video for 08.05.23

Euro vs US Dollar Weekly Technical Analysis

The Euro has gone back and forth during the course of the week, showing signs of confusion yet again. With the Federal Reserve, European Central Bank, and Non-Farm Payroll numbers coming out during the back half of the week, this should not be a huge surprise as this week was always going to have the possibility of extreme volatility. At this point, I think we are trying to determine whether or not the Euro can continue to climb against the US dollar, as traders around the world are trying to determine whether or not the Federal Reserve is going to actually stick to his guns.

It’s been interesting, because even though Jerome Powell swears up and down that he is going to remain tight for as long as it takes, it does not seem like the market believes them. Because of this, we have seen the US dollar suffer against most currencies, with the euro being no different than any other.

If we can break above the 200-Week EMA, then it’s likely that the market goes much higher, perhaps reaching toward the 1.15 level before it’s all said and done. This has been a brutal move higher, but it does look like it’s getting a little stretch. Perhaps we need to do more consolidation than anything else in the meantime, which does make a certain amount of sense considering just how ugly things are at the moment. With that being the case, I think we are more likely to see a range bound market over the next couple of weeks considering we have gotten through all of these major announcements, and still have not changed the complexity of the next move.

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

This article was originally posted on FX Empire