EUR/USD Forecast Video for 08.02.23
Euro vs US Dollar Technical Analysis
The Euro initially tried to rally a bit during the trading session on Tuesday, but then rolled over to show signs of weakness again. At this point, it looks as if it is going to go down to the 50-Day EMA, perhaps down to the 1.06 level. For this reason the Euro continues to look very weak, and therefore I think we’ve got a situation where we continue to see the US dollar strengthened, and if Jerome Powell during his speech this session could very well scare the market as we have seen a lot of inflationary pressures in the form of higher jobs numbers on Friday of last week, which of course has terrified most of the traders out there as they now suddenly have to worry about whether or not there is going to be tighter monetary policy.
At this point, I suspect that the Federal Reserve will have to reiterate its desire to keep monetary policy tight, and therefore we could see the Euro will be looking to the 1.06 level. The 1.06 level of course is an area that’s been important in the past, so I think it would attract a certain amount of attention. However, I think the real fight is probably closer to the 200-Day EMA, which a lot of traders use to define the overall trend. Going forward, that could open up a floodgate of selling as panic could hit the market. One thing is for sure, we have seen a massive shift in psychology over the last couple of days, so this point I think just about anything is possible. I look at rallies as potential selling opportunities.
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This article was originally posted on FX Empire