EUR/USD Forecast Video for 04.04.23
Euro vs US Dollar Technical Analysis
The Euro initially tried to rally during the trading session on Friday but found a bit of trouble above the 1.09 level. The 1.09 level is an area that shows quite a bit of selling pressure, where we had seen selling before. Ultimately, this is a market that will continue to see a lot of overhead pressure due to the fact that the 1.10 level has been even more resistant. This is an area that I think you’ve got a lot of trouble ahead, so if there’s any type of attempt to get above the 1.10 level, then we will almost certainly see a drop.
That being said, if we were to break above the 1.10 level, then it’s possible that we could go much higher, but that would be a significant amount of effort expended, and therefore we would need to see the US dollar start falling against almost everything. That being said, if we do pull back from here, there are plenty of areas where the buyers could return. The first one would be the 1.08 level, as it is a large, round, psychologically significant figure. After that, then you have the 50-Day EMA coming into the picture near the 1.0733 level, followed by the 200-Day EMA which is just below the 1.06 level. In other words, I do think that a pullback it’s coming but I’m not necessarily looking for some type of massive meltdown. It’s obvious that we have seen quite a bit of resistance near the 1.0950 level over the last couple of weeks, so therefore I think a pullback makes more sense than not.
Furthermore, we are starting to see interest rates in America rise again, and that of course is bullish for the US dollar. The market will continue to see a lot of back-and-forth, and of course this pair will remain choppy going forward. You should also keep in mind that the US dollar is quite often ran towards if you have some type of negativity in the markets, as a lot of money will flow into the US Treasury market. In general, this is a situation that is also going to be a proxy for the US Dollar Index as per usual.
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This article was originally posted on FX Empire
