EUR/USD Forecast Video for 09.08.23
Euro vs US Dollar Technical Analysis
The Euro has fallen significantly during the trading session on Tuesday, as we have sliced through the 50-Day EMA. The 1.09 level underneath continues to offer support, and I do think that a lot of people will pay close attention to it. That is right in the middle of the 50-Day EMA and the 200-Day EMA indicators, suggesting that we could see a lot of noisy behavior and of course a lot of potential support. With that being the case, the market also has to pay close attention to the uptrend line just underneath there as well, so it all makes quite a bit of sense that we would see that as the “bottom of the trend.”
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If we turn around and rally from here, the 1.10 level is an area where you would see a lot of psychological resistance, and an area that has been resistance previously anyway. After that, then we could go looking to the 1.1250 level, which is where the market had recently run out of momentum. That resistance could make a nice target, but at this point we need to see some type of major turnaround to pick up enough momentum to get to that area, but it is something worth paying attention to.
If we were to break below the uptrend line, then the market could drop down to the 1.06 level, which of course is an area where we had seen a lot of noise previously, but quite frankly if we break down below that uptrend line, it would not surprise me at all to see the euro drop even further. A lot of this is going to come down to whether or not the Federal Reserve remains tight for as long as they state that they are going to, which at this point in time there’s no reason to doubt that, but the market has seen that to be the case occasionally.
At this point in time, I do think that there is only a matter of time before we have to sort things out, but in the short term it looks like we are going to continue to see a lot of choppy volatility.
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