EUR/USD Forecast Video for 27.04.23
Euro vs US Dollar Technical Analysis
The Euro has rallied a bit during the trading session on Wednesday, as we are trying to reach above the 1.1050 level. That being said, the area has been very resistant as of late, and we continue to see a lot of questions asked about the Euro and whether or not it can continue. Ultimately, the market will have to decide whether or not we will go much higher, perhaps reaching the 1.1250 level.
Underneath, the 1.10 level would be an area where a lot of people would pay a certain amount of attention to, and breaking down below there then opens up the possibility of a move down to the 1.09 level. Ultimately, this market looks like it will continue to be very noisy, and therefore I think you need to keep an eye on short-term charts more than anything else. We are getting a bit stretched, but I’ve been saying that for a week, and therefore I think you got to look at it through the prism of a short-term back and forth range bound market. However, the market looks as if we are building up enough pressure to make some decision finally, and when we do it should be rather obvious.
A lot of what’s going on is the fact that the Federal Reserve continues to swear up and down that it’s going to remain tight with its monetary policy, but at the same time, the market doesn’t believe them. Ultimately, this showdown will get settled, and when it finally does, it would be a large move just waiting to happen. It’s essentially being squeezed and a lot of pressure being put on this market in both directions, and that can only last for so long.
Ultimately, I think we will eventually get some type of impulsive candlestick, perhaps at the end of the week as we get PMI figures coming from multiple different countries, and then we can follow whatever direction the market starts to break. I do think given enough time, we will get a bit of a signal for a longer-term move where we can put real money to work.
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This article was originally posted on FX Empire
