EUR/USD Forecast Video for 03.07.23
Euro vs US Dollar Weekly Technical Analysis
The euro has gone back and forth during the course of the week, trying to figure out where it wants to be for a longer-term move. The 1.09 level continues to be important, and therefore I think you have to look at it through the prism of a potential magnet for price. With this, we still don’t know whether or not the euro is going to be able to recover against the US dollar, or if we are going to see some type of breakdown.
As things stand right now, it appears that both central banks are likely to raise interest rates, so it does make a certain amount of sense that we bounce around and try to figure out what we are going to do with herself in the meantime. Until one of the central banks actually makes a definitive change in monetary policy stance, it’s likely that this pair will continue to be very choppy, and therefore I think you have a situation where you have to trade from a shorter-term perspective more than anything else.
It’s difficult to imagine a “buy-and-hold” or a “short-and-hold” type of scenario right now. The 200-Week EMA sits near the 1.11 level, while the 50-Week EMA sits right around the 1.07 level. As we are between the 2, it shows that we are more or less in some type of consolidation. I expect more of the same, so if you are a short-term trader this is a nice range-bound market that you can be involved in, otherwise it will be very difficult to trade if you are looking at weekly charts for some type of clarity.
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This article was originally posted on FX Empire
