EUR/USD Forecast – Euro Continues to Push Higher

EUR/USD Forecast Video for 29.11.22

Euro vs US Dollar Technical Analysis

The Euro has had a strong session on Monday, breaking above the previous high but pulling back slightly once he got there. At this point, traders are speculating on the idea that the ECB will be forced to raise rates even further, as inflation is a major problem in the European Union. Because of this, it’s very likely that we will see noisy behavior, but it also could turn around in a flash as this week will give us multiple things to think about when it comes to the US dollar.

Core PCE comes out this week, which is the favorite inflation metric that the Federal Reserve uses. Furthermore, the jobs number also comes out on Friday so that almost always has a major influence on where we go next. With this in mind, I believe that we have a situation where the Euro could continue to go higher and finally break to the upside for a more sustained and perhaps trend changing move, or we will pull back over the next couple of days.

It would make a certain amount of sense to consolidate around the 200-Day EMA, because a lot of technical traders will be paying close attention to it. That being said, moving averages are lagging indicators so you can only read so much into it. The market had recently gotten way ahead of itself, so now it will be interesting to see whether or not we get enough “risk on behavior” to send the Euro higher for a more sustained move. Quite frankly, the European Union is not kicking up economic numbers that would cause a lot of betting on the Euro, this is all about interest rates.

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