Eur/Usd Forecast: Faces Negative Pressure Amidst Concerns
Date
6/30/2023 4:22:14 AM
(MENAFN- daily forex) the eur/usd initially attempted a rally during thursday's trading session but faced significant downward pressure. better-than-expected unemployment claims in the united states have fueled worries about the federal reserve's potential tightening measures. despite chairman jerome powell's announcements of upcoming interest rate hikes, skepticism persists among market participants.
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read full review get started the euro finds itself in a precarious position as market sentiment remains uncertain due to the actions of the federal reserve. the release of positive unemployment claims data in the united states has raised concerns about the central bank's future policy decisions. while powell has already signaled two upcoming interest rate hikes, there remains a degree of disbelief among some market participants. consequently, instances of negative price movements often serve as further evidence for those questioning the federal reserve's credibility.technically, the euro is currently confronting the 50-day exponential moving average just below its current price level. this moving average previously provided support last week and may potentially offer some reprieve once again. however, if the euro fails to find support and breaches the 50-day ema, a further decline towards the 200-day ema becomes a possibility. if these crucial levels are broken, it could signify a deeper correction in the market, potentially leading to a trend change.choppiness aheadthe dynamics surrounding the euro and its us dollar counterpart contribute to the market's noise and volatility. the federal reserve's cautious and proactive stance on tightening monetary policy instills confidence in the us dollar. conversely, the european central bank has indicated its intention to raise interest rates soon. these divergent policy paths create a backdrop of uncertainty, ensuring that the euro will continue to experience turbulent trading conditions. given the prevailing uncertainties, traders should exercise caution and adopt conservative position sizing strategies. it is advisable to refrain from going "all in" on the euro and instead adopt a short-term trading perspective. the likelihood of prolonged choppiness in the market necessitates a careful approach to navigate through this consolidation phase. expectations of further market noise reinforce the importance of closely monitoring price movements and adjusting strategies accordingly.the euro faces headwinds as doubts persist surrounding the federal reserve's policy decisions. with the market remaining highly volatile and influenced by divergent central bank actions, caution is essential. traders should approach the euro with a short-term trading perspective, mindful of the potential for continued choppiness in the market.ready to trade our daily forex forecast ? here's a list of some of the best regulated forex brokers to check out.
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