EUR/USD Forecast – Euro Continues to Climb

EUR/USD Forecast Video for 14.07.23

Euro vs US Dollar Technical Analysis

The euro initially tried to rally during the trading session on Thursday, and it looks like we may have a little bit of follow-through. At this point, the market is likely to get looking to the 1.1250 level, an area that of course is a large, round, psychologically significant mid-century range, and an area that in the past has been important previously. If we can break above there, then it’s likely that the market could go to the 1.15 handle.

Underneath, the 1.11 level is an area that previously has been resistance and should be supported on any type of pullback. All things being equal, this is a market that continues to see plenty of buyers, especially as it seems like the US economy is finally going to see a little bit of relief from the inflationary headwinds. Granted, we are a little overdone to the upside in the short-term, but it shows that the trend is most certainly to the upside, and it’s probably worth noting that the market had previously formed a massive ascending triangle, and therefore it’s likely that the markets will continue to see technical traders chase this market higher.

Underneath, the 50-Day EMA sits right around the 1.09 level, an area that would be short-term support, and perhaps a bit of a “floor in the market.” Underneath there, then the market has to look at the 200-Day EMA as support as well, near the 1.0750 level. It’s not until we break down below that level that the trend would change, and therefore it’s likely that you would see a massive selloff if we do break down below there. I don’t expect to see that, but it is something to keep in the back of your mind for longer-term moves.

In the end, it’s very likely that the euro continues to go higher but may need to pull back a bit in order to build up enough value so the traders will jump into the market and try to take advantage of “cheap euros.” The US dollar is on his back foot against most currencies, so this should continue to be the case going forward.

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