As always, before moving on to forecasts on the euro-dollar exchange rate, I would like to remind you that at present the main market movers capable of affecting the balance between the two currencies are those coming from central banks.
In fact, the attention of operators and analysts remains very high, to try to predict the impact of monetary policy recipes aimed, both in the old and in the new continent, at stemming galloping inflation.
Forecasts on the euro dollar exchange rate
This 2023 therefore opens with a convincing rise that could push the euro-dollar exchange rate rapidly towards the resistance of 1.07, attempting to break it definitively.
In the event of a bullish break-out, in fact, after reaching the recent highs of 1.072, the euro-dollar exchange rate could extend its extension up to 1.075 and 1.078.
Reaching these intermediate values could allow the euro-dollar exchange rate to adjust for an attempt to overcome the next resistance at 1.08. Under constant market conditions, and excluding the bearish scenario (which we will discuss shortly), I believe that this last value could represent the first short-term bullish target for the beginning of 2023..
The scenario described up to now would be undermined by a sudden rebound below the support of 1.06 and towards the next one of 1.05. While these two lines of defense have proved solid enough, the risk of a breakout cannot be ruled out a priori.CopyAMP code
If so, that would pose a huge threat to bullish EUR/USD traders given the large technical gap behind the 1.05 level (subsequent supports can only be identified at 1.025/1.03).