The EUR/USD Forecast Today
The EUR/USD is trading at a range. However, it remains in a neutral intraday bias. There are many factors influencing this, including the latest economic data, the ongoing trade war with the US and the upcoming Federal Reserve interest rate decision. Regardless, we're confident that the EUR/USD will maintain its current level through the rest of the year.
The EUR/USD continues to trade within a range. It slipped below the 1.0390 level last week and reached its maximum at 1.111810. However, a break of the range's upper boundary could send it into a downward spiral. This could lead to a test of 1.0700 before Christmas.
The dollar is a safe haven against the euro. However, the euro has been in a long term downtrend against the US dollar. Therefore, if the equity markets begin to fall, the Euro could experience a correction. For this reason, it is important to consider the latest market trends.
A key component of any strategy is to use price action to determine the most likely time to enter and exit a position. One of the most useful ways to do this is to observe candlestick lows and highs. Although it may be tempting to enter a position too soon, a delay can help ensure that you get a good price.
If you are a long-term investor, then you may want to keep a close eye on the latest developments in the euro-dollar exchange rate. Recent data indicates that the Federal Reserve has not met its goal of a 2% annual growth in the personal consumption expenditures price index. In November, the CPI was 7.1% year-on-year, its lowest reading since December 2021.
USD/EUR has been in a lateral range from early 2015 to mid-2017. During this period, EUR/USD bounced up and down, with some periods of consolidation in between. Eventually, it broke out of the range in mid-2017. Since then, the pair has been consolidating.
On Thursday, the Euro had a small loss, but a rebound in the afternoon led it to regain its footing. With the USD under pressure, the pair was moving back towards its previous resistance zone. As a result, it is now trading in a range between 1.1750 and 1.1920.
The EUR/USD is a highly-traded currency. It has been the world's second-most traded currency in the world behind the dollar. Because of its large volume and liquidity, it has been in a lateral range for most of its life. Usually, a narrow range bar raises apathy levels. Traders may want to enter a position when the bar closes. Putting a stop loss in place can help ensure that you do not lose all of your money if the EUR/USD starts to slide.
There are a number of important support and resistance levels on the chart. These levels will provide the most direct information about how the pair is moving. They are also the most likely to be used in a trading plan.
While the dollar is still a safe haven, it may be in need of a boost from the ECB. If the ECB is able to increase interest rates even during a recession, it would be a big win for the European periphery.
EUR/USD intraday bias remains neutral
The EUR/USD currency pair has been trading in a narrow range for the past few days. It has reached a significant juncture in its progression as it reaches the 25-day moving average and approaches the lower side of an ascending channel pattern.
Although the pair was a bit choppy after the overnight session, the EUR/USD intraday bias remains neutral. This is in part because of the mixed US economic data that was released. A number of key events will likely impact the entire market, but few are likely to have a pronounced effect on the Euro.
In terms of the most important numbers, the consumer confidence figure came in at a moderately positive level. However, the Fed interest rate decision has a more direct impact on the dollar. As a result, the US is underperforming its major forex partners.
Today's release of nonfarm payrolls is an important event for the US. A number of important macroeconomic metrics are due, including jobless claims and housing starts. Economists expect a GDP growth of 2.9% in the third quarter. These are important indicators of the long-term direction of the economy.
If the EUR/USD is to move higher, the key support levels are 1.1500 and 1.1645. While a break of these levels would signal a deeper retracement, buying intraday dips will remain a viable option.
Those looking to trade the Euro dollar should take a look at the Keltner channel indicator to determine where the reversal point is. Similarly, the RSI is also a great indicator of overbought conditions. When the RSI hits 70, this is usually a sign of a bearish trend reversal.
Traders should also note that the ECB has just held a meeting and released its first reaction to the growth of the euro. Although the ECB is not directly related to the economy, the ECB's messages give a clear indication of its views on the future of the economy.
Lastly, price action signals provide the most direct information about the market. They work best when they are centered near key support and resistance levels. With that in mind, a look at the four-hour chart of the EUR/USD should show that the underlying trend is still bullish.
The euro has been pushing higher for several months. But with covid19 concerns lingering on Europe's horizon, it's not surprising to see the Euro dollar underperforming the American dollar. Nevertheless, it's not necessarily a bad thing.
Despite the recent rise in the Euro, there's plenty of room for further gains. While it's hard to be nimble in a large and volatile market, a breakout could lift offers back to June's high at 1.0040. On the flip side, gold is likely to begin its downward slide, which could put a dent in the Euro's recovery
EUR/USD forecast for 2023
If you have been watching the EUR/USD, you might be wondering where it is headed for the next year. This forecast explains the outlook for this pair and what factors are driving its rise and fall. However, the future is unpredictable, and there is no single cause for the EUR's strength or weakness. The dollar is strong due to the Federal Reserve's hawkish stance. There are a few risks affecting the euro, including the energy crisis and Russia's gas supplies.
In addition, there are concerns about the euro's ability to gain ground against other cyclical currencies. Investors are also interested in the ECB's capacity to raise interest rates in the face of a recession. These fears may be offset by better-than expected economic data in the eurozone. Moreover, an easing of restrictions in China could fuel a wave of cyclical growth in Europe.
The spread between US Treasury yields and German bond yields will play a key role in driving the exchange rate. However, this will be less of a factor on a two-year basis. Also, if the ECB continues its hawkish stance, it will help boost the euro. While the euro has been in decline against the dollar this year, there are some positive developments that will help it. For instance, the reopening of the Chinese market should increase demand for European exports.
Ultimately, this will help boost the economy and may be a catalyst for the single currency to begin to recover. Furthermore, the hawkish stance of the Fed is driving investors to the dollar. The US is seen as a counter-cyclical safe haven, and it has enjoyed a recent surge in capital inflows. Moreover, the Fed has been aggressive in hiking interest rates, which has been beneficial for the dollar.
While the dollar is expected to remain a safe haven, it will likely see more volatility in the coming years. It will also be exposed to risks from inflation and financial crises. Therefore, the euro is predicted to lose ground in 2023, and will probably reach parity with the dollar at some point.
Despite these short-term trends, the USD's strength should be sustained over the long-term. This is due to the Federal Reserve's hawkish policies, and the euro's status as a cyclical currency. That said, the euro is not expected to break the $1 mark until at least 2026.
Although the euro has lost a lot of ground in recent months, it has been able to recover some of its losses thanks to a milder winter. Nevertheless, it is still under pressure because of deteriorating Eurozone economic conditions. The euro is forecast to end the year at 1.012, which is the lowest level since January 2010.
Looking ahead, the EUR/USD forecast suggests that the euro's decline will continue. While it may end up in a range between 1.06 and 1.15 in the near-term, it will likely be limited by the upper border of the trading channel at 1.15 USD
Olga Steiner
https://financeworld.io/!!!Trading Signals And Hedge Fund Asset Management Expert!!! --- Olga is an expert in the financial market, the stock market, and she also advises businessmen on all financial issues.