EUR/USD Forecast Video for 22.06.23
Euro vs US Dollar Technical Analysis
The euro has gone back and forth during the trading session on Wednesday as we are trying to work off some of the excess froth. Ultimately, the 1.09 level is an area that would attract a lot of attention, as well as previous support. Now it looks like an area of contention. At this point the market continues to see a lot of back-and-forth as we had that impulsive move higher, and now we have to pay close attention to whether or not the US dollar picks up a little bit of momentum, or if it gets sold off. All things being equal, I think this pair probably will kill time more than anything else, but it does seem to have a bit more upward trajectory than not.
If we do break down from here, the market will probably see a lot of support near the 50-Day EMA, close to the 1.0850 level. After that, then we have the previous consolidation area, which is also backed up by the 200-Day EMA in the previous uptrend line. With this, I think you would have more of a “buy on the dip” type of set up, unless of course, we break down below that 200-Day EMA on a bigger move, perhaps even on a weekly candlestick.
At this point, I think we just have more noise than anything else, so I think we’ve got a situation where you probably have to continue trading this market from a short-term back-and-forth type of perspective. The market will continue to pay close attention to interest rate policies from the Federal Reserve and the European Central Bank, so caution is probably the better part of valor. It’s probably worth noting that Federal Reserve Chairman Jerome Powell speaks in front of Congress over the next 2 days, so that probably could throw the greenback around as well.
Position sizing will be crucial in this environment, as the choppiness could cause major issues for those who are over-leveraged. Because of this, I think we got a situation where you are reduced to trading hourly charts or perhaps even lower time frames.
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This article was originally posted on FX Empire
