EUR/USD Forecast Video for 28.11.23
Euro vs US Dollar Technical Analysis
The euro has initially gapped to the upside to kick off the trading session on Monday, only to turn around and start falling. However, since then we have rallied a bit as we are testing resistance yet again. The 1.0960 area is resistance, extending to the 1.10 level. All things being equal, this is a market that I think continues to see a lot of resistance and therefore I think we will continue to see a lot of back and forth. Quite frankly, this is a market that I think will be noisy as we are a little bit overextended at the moment, but also have plenty of people out there willing to jump in and pick up dips. In other words, we probably continue to see a lot of noisy behavior in this general vicinity.
Underneath, the 1.0850 level is significant support, and a lot of people will be paying close attention to it as it has attracted attention previously. Ultimately, I think this is a situation where you have to continue to look at this through the prism of going back and forth, trying to sort out where we are going longer term. After all, we had recently shot straight up in the air, only to run into a massive barrier.
It might be worth noting that the 50-Day EMA underneath has started to cross above the 200-Day EMA, and therefore we are getting ready to kick off the so-called “golden cross.” With that being said, a lot of traders will look at this as a potential signal to start buying from a longer-term standpoint, despite the fact that it quite often will be a little bit late.
Ultimately, if we were to break above the 1.10 level, then I think the market is likely to go higher, perhaps reaching the previously significant 1.1250 handle. On the other hand, if we turn around and break down below the 1.0850 level, it opens up a move down to the 1.0750 region, where the aforementioned 50-Day EMA and the 200-Day EMA indicators currently reside in this market.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
