EUR/USD Forecast Video for 08.03.23
Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during the trading session on Tuesday but gave back gains near the 1.07 level. The 1.07 level is a large, round, psychologically significant figure and an area where we have seen both support and resistance recently. That being said, the market also has been banging around between the 50-Day EMA and the 200-Day EMA indicators, which typically will mean that we have a lot of noise out there that is going to continue to be a problem.
If we were to turn around and break down below the 200-Day EMA, which is basically at the 1.05 level, then it opens up a trap door to much lower prices, perhaps down to the 1.03 level, followed by the parity level. The parity level of course is an area that will attract a lot of attention due to the fact that it is a level that makes for a good headline number. However, I think at this point we’ve got a situation where we have so much in the way of noise and volatility out there that sooner or later the Euro starts to fall. After all, when you look at the chart you can see that we had fallen rather drastically from the 1.10 level. The last couple of weeks have been very noisy, but it’s also worth noting that it was kicked off by a massive shot lower.
Jerome Powell is speaking during the session, in front of the United States Congress. That could be a mover of markets, but we will have to wait and see. Either way, it looks as if the sellers are going to continue to take hold of this market, especially as we sold off so drastically from the 50% Fibonacci level of the massive selloff that occurred last year. I think we continue to see more of the same, and therefore I think it’s only a matter of time before we go lower. That being said, if we were to turn around and break above the recent highs, that could change everything but I would not hold my breath on that.
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This article was originally posted on FX Empire
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Source: finance.yahoo.com