The week since the rate hike from the central banks has ended and if there were risks of the US dollar falling, now they have faded into the background and the market is likely to go further as part of the technical analysis. The ECB raised the rate by 50 basis points, apparently this influenced such a powerful pullback of the euro, which we have seen recently. However, inflation in the euro area is declining rapidly, the market may regard such a signal as the end of the cycle of rate hikes from the ECB, even despite the promises of raising rates by another 50 basis points at the March meeting. For the Fed, the increase was only 25 basis points, but it is clearly not the last, economic data is already strong. On Friday, the US economy unexpectedly created 517,000 jobs in January this year, the most in 5 months. Such an indicator could not remain unnoticed by the market and there was a strong strengthening of the US currency. In the current trading week February 6 — 10, 2023 there is every chance to see the continuation of this trend.
EUR/USD Forecast February 6 — 10, 2023
The Euro/Dollar currency pair EUR/USD completes the trading week near the area of 1.0885 and continues to move within the correction and the downward channel. Moving averages indicate a bearish trend. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of the European currency and a likely continuation of growth already from current levels. At the moment, we should expect an attempt to develop the growth of quotes and test the resistance area near the level of 1.0925. Where is the expected rebound down and the continuation of the fall of the Euro Dollar. The potential target of the decline is the area below the level of 0.9675.
An additional signal in favor of a decrease in the EUR/USD currency pair on Forex will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option of falling quotes of the Euro/Dollar pair in the current trading week February 6 — 10, 2023 will be a strong growth and a breakdown of the level of 1.1075. This will indicate a breakdown of the resistance area and continued growth of the pair to the area above the level of 1.1485. With a breakdown of the support area and closing of quotes below the level of 1.0605, which will indicate a breakdown of the lower border of the bullish correction channel.
Among the important news from America and Europe in the next trading week, which may have an impact on the EUR/USD rate, it is worth highlighting: Retail sales in the European Union m/m (European Union Retail Sales m/m, EIA United States Crude Oil Stocks Change, European Union Leaders Summit.
EUR/USD Forecast February 6 — 10, 2023 suggests an attempt to develop a correction and test the resistance area near the level of 1.0925. Where should we expect the pair to continue falling in the Forex market to the area below the level of 0.9675. An additional signal in favor of the decline will be a test of the resistance line on the relative strength index (RSI). Cancellation of the fall option for the Euro/Dollar will be a strong growth and a breakdown of the level of 1.1075. In this case, we should expect the pair to continue to rise with a potential target at the level of 1.1485.
Looking for the Best Forex Broker? We trade at RoboForex. You can receive a rebates from each trade when registering using our partner link