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EUR/USD Forecast – Euro Continues to See a Lot of Choppy Behavior Just Below Major Resistance

By:
Christopher Lewis
Published: Dec 9, 2022, 14:46 UTC

The Euro has gone back and forth during the trading week, as we continue to threaten the 1.06 level.

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In this article:

EUR/USD Forecast Video for 12.12.22

Euro vs US Dollar Weekly Technical Analysis

At this point, it’s obvious that the 1.06 level is crucial, and at the end of the day it is worth paying close attention to whether or not we can get above there. If we can break above the top of the candlestick on a daily close, then I think the Euro really starts to take off. At the very least, I would expect to move to the 1.08 level. Anything above there could change the entire trend. On the other hand, if we turn around and break down below the bottom of the candlestick for the week, then we could drop down to the 1.03 level.

I think a lot of traders are looking at the central bank meetings next week to see what happens next, especially as we head into the end of the year when a lot of traders will be involved. With that being said, the Federal Reserve has a meeting on Wednesday, followed by a meeting of the ECB on Thursday. That being said, I expect a lot of volatility between now and then, but the market may be trying to frontrun what the Federal Reserve is going to do. We will have to wait and see whether or not this case, but right now it certainly looks as if we are trying to make up our minds. With that, expect choppy volatility and pay close attention to that 1.06 level going forward.

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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