EUR/USD Forecast – Euro Continues to Rally

EUR/USD Forecast Video for 20.12.23

Euro vs US Dollar Technical Analysis

The euro rallied a bit during the session on Tuesday as it looks like we are going to try to get to the 1.10 level above, a large, round, psychologically significant figure that people will be paying close attention to. This is where we had formed a bit of a double top, and therefore, I think a lot of people will pay close attention to that area to see whether or not it continues to see massive resistance, but if we do break above there, the market is likely to continue to reach higher, perhaps going all the way to the 1.1250 level. The 1.1250 level is an area that has previously been important and, of course an area where we have seen selling pressure previously.

Underneath, the 1.0850 level is an area that could be short-term support, but after that we also have the 50-Day EMA indicator, which of course has a certain amount of influence on the market as well. In general, I think this is a market that continues to see a lot of choppiness as we head into the holiday season, which of course is going to feature a lack of liquidity, therefore we could get the occasional noisy move.

The size of the candlestick is bullish and fair as far as size is concerned, but the market will probably struggle to find any real momentum between now and the end of the year, especially as Monday will be Christmas Day. With this being the case, I think you probably stay within the range between the 1.10 level above, and the 1.0850 level below. We could break out, of course, but that probably has more to do with a lack of liquidity than anything else, and I don’t really know that it is a move that is anything more than holiday noise. Because of this, although the market looks bullish, we have a very discernible brick wall at the 1.10 level that we need to take out in order to get overly bullish, but between now and then we have a high likelihood of simply being range bound.

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