It is a tough job to predict the yearly forecast of a major currency pair. It is becoming very difficult it is the most dominant and liquid pair of EUR/USD. In spite of that, some financial events will play a big part throughout of the year along with the monetary policy of FED and ECB. Let drive into the details:
In the year 2023, there are a few big events that can move the market to a strong support/resistant level. Firstly, we need to focus on the Federal Reserve start with the FOMC. Secondly, If the interest rate hikes that would impact the trader’s decision making. I guess the interest rate will remain same, that might slightly hurt the haven of US Dollar.
There are no. of events to watch out in Europe this year. The issue like Brexit and Deutsche Bank can take a hand in the Euro pairs. At the beginning of the year, I don’t see such decisive outburst for the European zone. If the ECB sailing high then there might be some good news for the EUR traders. Although the chance remains low ahead of the Brexit issue.
As per the technical chat suggests, a bounced from the 61.8% Fibonacci retracement level. The price jump above the 1.15 level might indicate that EUR is a consolation and having the plot to rise, this scenario will give us hope for the bullish yearly trend. More likely the market remains sideways for a while as the year start, and there is strong support at the bottom to keep this market trend.
