EUR/USD Forecast Video for 25.05.23
Euro vs US Dollar Technical Analysis
The euro has gone back and forth during the trading session on Wednesday, as we are trying to figure out what is happening in the world. Ultimately, the US dollar of course will be used as safety if we start to see a lot of problems. Ultimately, this is a market that will move based on the most current risk appetite parameters, and quite frankly we are all over the place. If the market rallies from here it does certainly have a significant amount of resistance, especially near the 50-Day EMA, which sits right around the 1.09 level.
On the downside, the 200-Day EMA is sitting right around the 1.0650 level, and of course, will be an area that a lot of people pay close attention to. As we are between the 50-Day EMA and the 200-Day EMA indicators, it’s likely that we will see a lot of noisy behavior. This is typical for markets, as they try to determine the longer-term trend in general between these 2 indicators.
If the market were to break above the 1.09 level, then it opens up the possibility of a retest of the recent high, which is near the 1.11 level. If we can break above there, then the market could enter more or less a “buy-and-hold” situation. On the other hand, if we were to break down below the 200-Day EMA, then it could send this market down to the 1.05 level. The 1.05 level was a major swing low and of course, an area that we have bounced hard from previously. Anything below there then opens up a massive selling opportunity, and it would almost certainly send the euro much lower.
The only thing I am thinking you can count on at this point is going to be a lot of volatility, as we have no idea what we are looking at going forward, as the global economy certainly seems to be in a state of flux, and obviously, we will see the US dollar react accordingly. Both central banks in Europe and the US continue to see needs to be tight, so this will probably be all about risk appetite more than anything else.
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This article was originally posted on FX Empire