EUR/USD Weekly Forecast – Euro Plunges

EUR/USD Forecast Video for 11.12.23

Euro vs US Dollar Weekly Technical Analysis

The euro has fallen rather significantly during the course of the week, dropping down to the 50-Week EMA. That being said, the market is likely to continue to be very noisy, and therefore you have to be cautious with the position sizing. The 1.07 level underneath is going to be an area of intense importance, and therefore if we break down below that level, it’s likely that we see a lot of noise. In general, I think this is a situation where you have traders out there trying to sort out whether or not the US dollar is going to continue to strengthen, or if we are going to start taking risks again.

Ultimately, I think you are going to have to worry about entering a range of volatility between now and the end of the year, as the market participants will continue to look at the holiday season as a time when liquidity starts to disappear. I think at the end of the day, it’s likely a situation where we continue to struggle for some type of clear move, and therefore short-term traders are probably going to take over.

From a longer-term traders perspective, this might be a market that’s worth ignoring. That could be the case between now and the end of the year, but once we get into the month of January, longer-term traders will probably start to reassert their positioning again. With that being said, it certainly looks as if we are going to be somewhat range bound and I think it’s probably only a matter of time before we make the argument for turning off our computers and celebrating the holidays.

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