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EUR/USD Forecast – Euro Continues to Chop Back and Forth

By:
Christopher Lewis

The Euro has rallied a bit during the trading session on Thursday, as we continue to dance around the 1.05 level.

Euro FX Empire

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EUR/USD Forecast Video for 09.12.22

Euro vs US Dollar Technical Analysis

The Euro has rallied a little bit during the trading session on Thursday, as we continue to hang around the 1.05 level. You could make an argument for a little bit of an up trending channel, or even perhaps a bit of a rising wedge, depending on where we go next. Ultimately, we are above the 200-Day EMA, and that is a very strong sign. However, if we were to turn around and break down below the 200-Day EMA, then we could see this market break down rather significantly.

All things being equal, this is going to be all about the interest rate markets in the United States, and whether they are rising or falling. On days that interest rates rise, that brings down the Euro, and of course vice versa. There are a lot of questions out there whether or not the ECB is going to be able to go forward and tighten further, but right now it seems as if the market does believe that either they are going to, or the Federal Reserve is going to stop.

Even if they were to stop, monetary policy is going to continue to be very tight, and for much longer than people would anticipate. Ultimately, this is a market that I think sees a lot of noise in the short term, and most people are probably going to be waiting until next week to put money to work, as we have the Federal Reserve meeting, followed the very next day by the ECB meeting. Those 2 announcements and statements will determine where we go for a much bigger move.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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