EUR/USD Forecast: EUR Pulls Back Slightly To Show Hesitation
(MENAFN- Daily Forex) Advertisement see for yourself why eur/usd is the most traded pair trade eur/usd now The Euro made an initial attempt to rally on Wednesday, but it didn't last long as concerns about the economy started to weigh on the currency markets. The global economic outlook is a critical factor that impacts the Euro's value, and if the global economy is set to slow down, it could lead to a shift in the currency markets. As a result, the eur/usd currency pair looks set to continue experiencing a lot of noise between 1.09 and 1.10, which is where we saw a sell-off previously. The "market memory" in this area should be taken into account, but it remains to be seen whether or not we will hold this level.Expect a Pullback Looking at the technicals, the 50-day exponential moving average is currently sitting near the 1.075 level and is rising. This suggests that a pullback towards this area would not be surprising, given that the market is still showing tentative behavior. Additionally, we are at the top of the major consolidation region, which makes a pullback even more likely.
However, if the market were to break above the recent highs near 1.1040, it's likely that the Euro could go much higher, potentially ending up at the 1.15 level. It's important to note that this is a market that continues to see a lot of choppy volatility , so traders need to be cautious and monitor the market closely. One of the key factors that could impact the Euro's performance is the Federal Reserve's stance on interest rates. A couple of Federal Reserve members have suggested that they are going to continue to be tight with monetary policy, and that interest rates will have to continue rising. However, the fact that inflation continues to range could cause major issues, and there may be more confusion than anything else at the moment. Therefore, traders need to be very cautious, but it does look like the market is currently overstretched.In SummaryThe Euro's outlook is uncertain at the moment, with the market experiencing a lot of noise between 1.09 and 1.10. A pullback towards the 50-Day EMA is not unlikely, given the market's tentative behavior, and the fact that we are at the top of the major consolidation region. However, if the market were to break above the recent highs, it could lead to another leg higher for the Euro. Traders need to pay close attention to the Federal Reserve's stance on interest rates and monitor the market closely. Ready to trade our forex daily analysis and predictions ? Here's a list of regulated forex brokers to choose from.
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