EUR/USD Forecast – Euro Continues to Chop Back And Forth

EUR/USD Forecast Video for 23-01-2024

Euro vs US Dollar Technical Analysis

The Euro had initially tried to rally during the trading session on Monday, but really hasn’t picked up any traction. And this should not be a huge surprise considering there is a serious lack of economic information being released during the day. This has been the case with most financial markets I follow, and of course the EUR/USD pair is a bit of a microcosm for the flow of money around the world as it is the world’s largest market.

Because of this, I suspect that the market is probably going to remain fairly quiet over the next 24 hours, and it is also probably worth noting that the market is currently hanging around the 50-day EMA. The 50-day EMA indicator has been rather reliable over the last several months as potential support, so I do think it makes a certain amount of sense that we would have a little bit of a hesitation here.

It’s also worth noting that the 1.09 level is right around the same area, so that of course acts as a magnet as it is a large round psychologically significant figure. All things being equal, I think we are looking at a market that is still trying to sort out where it wants to go in the longer term, and therefore we probably need to look for some type of impulsive candlestick to start following.

If we break higher, I believe that the 1.10 level will continue to be significant resistance, maybe even your short-term ceiling in the market. On the other hand, if we were to break down from here, the 200-day EMA comes into the picture, which of course is a major indicator that a lot of people would look to for potential support, followed by that you would have the 1.0750 level which has already shown its importance. Also, keep an eye on the 10-year yield in America as yields rising will make the dollar stronger, and falling will make it weaker, unless of course there is a huge run to safety, in which case you’ll see yields drop and dollar strengthen but that’s typically due to an event.

For a look at all of today’s economic events, check out our economic calendar.