EUR/USD Forecast – Euro Continues Consolidation
EUR/USD Forecast Video for 08.12.22
Euro vs US Dollar Technical Analysis
The Euro has rallied during early trading on Wednesday, but it is still in a consolidation mess right around the 1.05 level. The 1.05 level is sitting just above the 200-Day EMA, so that is probably something worth paying attention to as well. Ultimately, this is a market that I think is going to continue to see noisy behavior, but at the end of the day we probably have a lot to work through in this general vicinity. After all, the market is likely to see quite a bit of questions asked of it over the next couple of days as the Euro has shot straight up in the air for the last several weeks. We are potentially making a rising wedge as well, which of course does not help the situation.
Looking at this chart, if we were to slice below the 200-Day EMA, then we could start to see selling pressure from that point. Ultimately, I expect that to be the case, but it is also very likely that we will see a lot of noise between now and then. With that being the case, all eyes will be on the Federal Reserve next week and what it has to say.
With this, I think the US dollar is trying to find its footing, but that does not mean it will be smooth sailing anytime soon. Because of this, I anticipate that the market will continue to be one that you have to think of through the prism of range bound trading, but with the recent selling that we have seen over the last couple of days, it may be more tilted to the downside, at least in the time being.
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