After the 441-day correction that began after the start of the Russia-Ukraine war, the euro is correcting its sharp downward trend. In the middle of this correction, by hitting its 200-week EMA in the weekly time frame, it has attracted all eyes to see if this upward moving average is broken or not.
This point is very key because it can initiate a continuation of a larger downtrend or, in the worst case, a new uptrend.
Considering the possibility of an increase in the US interest rate from 5% to 5.25%, there is a possibility that the value of the US dollar will rise again and, of course, the DXY index will strengthen, therefore, there is a weakening of the EUR/USD and a rejection from the EMA.
Based on the current sentiment of the market, my personal opinion is a slow crossing of the moving average.
This point is very key because it can initiate a continuation of a larger downtrend or, in the worst case, a new uptrend.
Considering the possibility of an increase in the US interest rate from 5% to 5.25%, there is a possibility that the value of the US dollar will rise again and, of course, the DXY index will strengthen, therefore, there is a weakening of the EUR/USD and a rejection from the EMA.
Based on the current sentiment of the market, my personal opinion is a slow crossing of the moving average.