EUR/USD Forecast Video for 13.02.23
Euro vs US Dollar Technical Analysis
The Euro fell a bit during the trading session on Friday as we continue to consolidate after that recent selloff. We are also sitting on top of the 50-Day EMA, right around the 1.07 level. Underneath there, the 1.06 level is also supportive, followed by the 1.05 level where we currently have the 200-Day EMA. In other words, even though this market does look threatened, I think there are multiple levels that could cause bumps along the way.
Any rallies at this point in time will have to deal with the top of the inverted hammer from Thursday, when it looked like everybody was going to try to sell off the US dollar against multiple currencies. That failed, so now it looks as if we are ready to continue going lower but it must be said that if we were to break above the top of the Thursday candlestick, it would be a very bullish side. However, there is still a massive amount of selling pressure above, so I think that short-term move would probably end up offering a selling opportunity more than anything else.
The Federal Reserve is doing everything he can to tight monetary policy, despite the fact that traders around the world don’t want to hear it. Every once in a while, reality creeps back into the market, and I think that’s part of what we are seeing here. With that, I do think that we eventually break down a bit, but it’s probably going to be through a series of moves, not one big one. With that, being nimble will be crucial, but I certainly am keeping an eye on the downside now.
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This article was originally posted on FX Empire
