EUR/USD Forecast Video for 16.10.23
Euro vs US Dollar Weekly Technical Analysis
The euro initially tried to rally during the course of the week, before giving back signs of strength. Alternatively, this is a market that looks as if it is trying to test the 1.05 level. The 1.05 level underneath is a significant support level that a lot of people have paid close attention to, and if we were to break down below the bottom of the hammer from the previous week, that opens up the possibility of even further weakness.
On the other hand, if we were to break above the top of the candlestick for this past week, then it would be very strong, and therefore the market could go looking to the 50-Week EMA. That of course is an area where a lot of people would see technical resistance. All things being equal, I think the only thing you can probably count on is a lot of volatility. The market will continue to pay close attention to interest rate differentials, and of course the fact that the European Union looks likely to head into a significant recession, that of course means that the euro would probably struggle a bit.
At this point, I think we’ve got a situation that favors fading rallies, as you can pick up “cheap” US dollars. Alternatively, it looks like the market is on the precipice of something rather nasty, so be advised that things could get out of hand rather quickly. This will be especially true of geopolitical concerns start away upon the market even further than they already do currently. The bottom of the candlestick from the previous week is crucial.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
