EUR/USD Forecast – Euro recovers towards resistance

EUR/USD forecast video for 22.03.23

Euro Technical Analysis against the US Dollar

The Euro recovered a bit in Tuesday’s session to hit 1.08. With that said, this is an area of ​​significant resistance through to 1.10 and with the Federal Reserve meeting on Wednesday, I doubt we can prepare for a trade. pandemic. Much of this will depend on whether Jerome Powell is a hawk or a dovish, and what they do with regard to interest rates. There’s consensus across the board that no one really knows, and I think that might be part of what you’re seeing here.

While Wall Street and many major companies want the Federal Reserve to stop raising interest rates, the reality may be different. After all, they are starting to worry about inflation, and if they choose to ease monetary policy again, that will almost certainly cause even more inflation. That said, the market has been arguing with the Fed for a while, and now that we’ve got a few banks going bankrupt, they believe the Fed simply “must ease” sooner rather than later.

The market sold the US dollar at the end of the year, but if Jerome Powell and company take everyone by surprise and continue to be unusually hawkish, that could send the market down. I think the next few sessions could be quite important, so we need to keep an eye on the market. Any signs of exhaustion between now and 1.09 must be viewed with suspicion, as this is an area where we saw an impulsive move to the downside as the market started to plunge. It’s probably worth noting that we bounced off the 200-day EMA, so of course that’s a bullish sign, but right now it could be the target if we break down. On the other hand, if we recover from here, you need to be cautious with the 1.10 level above, because if we somehow get above it, that could open up a huge upside in the upside. Euro. That will almost certainly involve the Federal Reserve changing its overall tune.

To see all today’s economic events, check out economic calendar.

This article Originally posted on FX Empire

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