EUR/USD Forecast Video for 23.06.23
Euro vs US Dollar Technical Analysis
The euro has been bullish over the last several weeks, but it seems like it’s getting choppier by the day. The market is threatening the 1.10 level above, which is right in the middle of a previous consolidation area that extends to the 1.11 level. Underneath, the 1.09 level offers a bit of short-term support, so if we were to break down below that level, then we could start to threaten the 50-Day EMA. That being said, we have more support underneath there that extends down to a major trend line and of course, the 200-Day EMA. Ultimately, this will probably end up being a market that finds plenty of buyers underneath, but if we were to break down below the 200-Day EMA, that is the very definition of a trend change.
On the upside, the 1.11 level is a massive barrier to overcome. If we do break above that level, then it is likely that the euro will continue to climb, perhaps to the 1.1250 level at that point. That being said, the market is very likely to continue seeing a lot of volatility regardless because there are a lot of questions when it comes to whether or not the global economy is slowing down. Keep in mind that the US dollar continues to be a safety currency that a lot of people come running toward.
Underneath, if we were to reach toward the 50-Day EMA, I think you could see a significant amount of support in that general vicinity. However, that would obviously take quite a bit of ugliness, and of course an attempt to wipe out the low from the Tuesday session, which is near the 1.09 level. That could be short-term support. Because of this, I think you get a situation where the market will continue to be noisy, but I think in general we have a situation where you have to pay close attention to global risk appetite in order to trade this pair. It does look a little strange, so a short-term pullback I suppose makes a certain amount of sense at this point. That being said, I think we continue to see quite a bit of choppiness I had.
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This article was originally posted on FX Empire
