EUR/USD Forecast Video for 19.05.23
Euro vs US Dollar Technical Analysis
The euro fell a bit during the trading session on Thursday as we continue to see the US dollar recover. Ultimately, this is a market that could drop all the way down to the 1.07 level, testing the 200-Day EMA. As risk appetite waxes and wanes, it’s probably worth noting that the euro may take it on the chin. Furthermore, a lot of the soft data out of Europe has been questionable as of late, suggesting that perhaps the EU is in the midst of some type of slowdown.
On the upside, we have the 50-Day EMA near the 1.09 level, an area that previously had been supported. At this point, it should have a bit of “market memory” at that level, showing signs of resistance. After all, the market tried to break back above the 50-Day EMA just a couple of sessions ago, but was repudiated quite quickly.
To the downside, the 200-Day EMA does make a certain amount of sense, and that does give us more than 100 pips to aim for. The 200-Day EMA continues to be an area that a lot of traders look to for the overall trend, so with that being the case it does make a certain amount of sense that we would see momentum pick up just a bit. However, if we were to break down below the 200-Day EMA, it opens up a move down to the 1.06 level, and then the 1.05 level. The 1.05 level obviously will attract a lot of attention as it is a large, round, psychologically significant figure, and of course will have represented a fairly steep decline in the market.
What is worth noting is that we have recently turned around near the 50% Fibonacci level for what that is worth. This is the retracement level from the entire move lower, so it obviously has a little bit more in the way of efficacy and meaning at this point. Regardless, it’s very likely that this market is going to continue to be very choppy and needs to be treated as such.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire