EUR/USD Forecast – Euro Continues to Consolidate

EUR/USD Forecast Video for 29.06.23

Euro vs US Dollar Technical Analysis

The Euro pulled back just a bit during the trading session on Wednesday, as we continue to hang around the 1.09 level the market recently has fallen down to the 50-Day EMA, only to turn around and show signs of strength. All things being equal, this is a market that continues to look at the 1.09 level as a bit of a fulcrum for price. Ultimately, this is a market that has been very noisy for quite some time, mainly due to the fact that both central banks are essentially in the same boat.

All things being equal, this is a market that I think continues to see a lot of noisy behavior, but ultimately, I think we have to figure out whether or not the ECB or the Federal Reserve is going to be more aggressive. I think at this point, the market is likely to be very noisy and choppy in this area, and I believe that this is more or less going to remain a situation where short-term traders will continue to push things back and forth and therefore, I think we’ve got a situation where you will have to look at this through the prism of neutrality. If you are a short-term trader, then a range-bound system probably continues to work out quite well for you.

The 50-Day EMA underneath could offer a bit of support near the 1.0850 level, and then of course the 200-Day EMA underneath there would as well. That being said, I think the 1.10 level above is going to continue to be a bit of a short-term ceiling in the market, as traders try to determine whether or not they have the momentum to continue breaking above all of these levels. If we do, then the 1.11 level will offer the next ceiling. If we were to get above there, then the market could very well go much higher, as it frees the market from all of the short-term overhead resistance. I don’t see that happening easily though, so more likely than not you will have to focus on small movements, perhaps on the 15 minute chart.

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