EUR/USD Forecast: Continues to Follow the Same Channel

Looking at the chart, you can see that the 200-day EMA is sitting below and may offer some support. EUR/USD is trying to move higher for some time. It’s probably worth remembering that we’ve been in a channel lately, so I think it’s more likely than not that we’ll see more of an explosion between these two trends than anything else. . Advertisement Trade now on favorable terms EUR/USD GET STARTED Looking at the chart, you can see that the 200 day EMA is below and may offer some support. Ultimately, the market is trying to predict that the Fed will pull back on its tight policy, and while that may be true, it will remain tight for a long time. There is a huge difference between a twist and a fit and I think the market has a bit of a flaw here. That said, if the Fed were to pull back on tightening, it would almost certainly bring CD with it, so I think it’s a rally that’s living on a bit of borrowed time. Markets are still very noisy. A lot of that depends on your schedule. If you are a shorter term trader, you obviously have more of an advantage. However, if you zoom out, you can see that the market has rebounded from an exceptionally oversold state. With this in mind, a rally is probably necessary. However, if the market turns, it is likely that we will see a complete breakdown. On the other hand, if we can take out the 1.06 level, I think the euro could eventually find its way to the 1.08 level. It’s the next major hurdle, so it would be an ideal target. Whether we will surpass that is of course for another day, but for now it seems that at least that is what the market is trying to achieve. A lot of that depends on whether we are more of a „risk-on” or „risk-off” kind of situation. It’s a market that I think will remain very noisy, so it’s probably better to trade a little higher on the short-term charts until we get the CPI readings on Friday and then of course the Fed meeting next week.

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