EUR/USD Forecast Video for 27.02.23
Euro vs US Dollar Weekly Technical Analysis
The Euro has fallen rather hard during the course of the trading week, breaking below the 50-Week EMA. At this point, it looks like we are going to test the hammer that formed near the 1.05 level, and at this point I think it’s probably only a matter of time before we break down below there. After all, interest rates continue to rise in the United States, and of course the Federal Reserve is looking less likely to loosen monetary policy as inflation numbers continue to be very strong in the United States.
If we break down below the bottom of the hammer, then I think it opens up an air pocket down to the parity level. That’s an area that would obviously attract a lot of attention and therefore I think you’ve got a situation where the area would put up a big fight. I also believe that the 1.05 level will, so I don’t necessarily think that it will be something that we slice right through, but if we do then the momentum is going to suddenly pick up.
Rallies at this point in time continue to face a lot of headwinds, so if we were to break above the top of the weekly candlestick, that would be a very bullish sign. However, when you look at the daily chart, it becomes increasingly obvious just how negative the Euro is, or perhaps you should just say how positive the US dollar is. With everything looking the way it does, and the fact that we bounce from the lows to test the 50% Fibonacci root level and form a shooting star, this is a perfect textbook technical setup.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire