EUR/USD Price Forecast – Euro Recovers After Initial Dip

EUR/USD Forecast Video for 24.04.23

Euro vs US Dollar Technical Analysis

The Euro initially pulled back a bit during the trading session on Friday, but then turned around to show signs of life. Ultimately, this is a situation where we have a lot of noise just above, and the market of course is trying to stare it down. If we can take out the recent high from last week, then it might allow the Euro to go looking to the 1.1250 level. However, there is a lot of work to get there, and of course there are a lot of concerns out there when it comes to the overall attitude of the market.

The 1.09 level underneath is significant support, and if we break down below there, then it’s possible that we could go down to the 50-Day EMA. The 50-Day is sitting right around the 1.08 level and is of course rising. This is a situation where a lot of technical buyers might be interested in getting involved. The market continues to see a lot of upward pressure in general, but a lot of this will come down to whether or not the European Central Bank continues to remain hawkish, and right now if they do seem to be hell-bent on staying tight. That being said, we also have to keep in mind that the Federal Reserve is more likely than not to remain tight as well, although they may not be raising rates much further than they already are sitting. This is the bet that a lot of traders are placing, that the Euro has not priced in all of the tightening.

That being said, we are on the precipice of several potential financial issues out there, and if that’s going to be the case the US dollar may become attractive again from a safety standpoint. Typically, when we have these financial issues, the Euro will gain initially, and then you will see a massive run to the US dollar. We may be setting up or something like that but as things stand at the moment, it does look like we are still remaining somewhat bullish in the face of significant resistance.

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