Extraordinary holidays outside Europe thanks to the strength of the euro – projectiondiborsa.it
2023 does not start in an excellent way for the euro against the dollar, but in the difficulties it has had the opportunity to demonstrate all its strength. At this point, if the rise were to continue, extraordinary holidays outside Europe would be possible with the euro super strong against the dollar.
The macro scenario on the euro dollar exchange rate
In a previous article we have mapped out the possible scenario for 2023. In particular, we have analyzed the macroeconomic variables that have influenced and could influence the euro-dollar exchange rate.
During 2023 the behavior of the Federal Reserve and the ECB will continue to influence the trend of the euro-dollar exchange rate. The trend in inflation will be decisive.
Then there are other aspects that could affect the currency and stock markets. First of all, the resurgence of Covid and the developments in the war between Russia and Ukraine.
Extraordinary holidays outside Europe with the euro super strong against the dollar: the indications of the graphic analysis
On January 6, the closing of the exchange euro Dollar (FXEURUSD) was at 1.0644, up 1.17% from the previous session. The week, on the other hand, ended with a fall of 0.52%.
Daily time frame
Crucial moment for the short-term trend of the euro-dollar exchange rate – projectionsdiborsa.it
After a very weak week, the euro reacted pulling its claws out during Friday’s session recovering more than 1%. This reaction may have mitigated the negative impact of the bearish cross. As can be seen from the graph, in fact, the daily closing was higher than both the short-term and the long-term average.
Therefore, the bearish reversal attempt may have already come to an end.
Weekly time frame
Averages firmly crossed upwards on the weekly time frame – projectionsdiborsa.it
On this time frame the current trend is up both according to averages and the SwingTrading Indicator. The interesting aspect, however, is that linked to the reaction of the euro. Indeed, as can be seen from the graph, after attempting a bearish break of the short-term average (blue line), the prices closed above giving a clear signal of strength. For now, therefore, all is well for the bulls.
Monthly time frame
Trend still down, but watch out for the probable next bullish reversal
The last quarter saw an important upward acceleration which brought the euro-dollar exchange rate to thetarget in the 1.1249 area. Obviously, the averages have not yet crossed to the upside, but if that event were to happen, then quotations could also aspire to reach 1.3.
In this case, a holiday outside Europe could be cheaper for citizens of the Old Continent.
