EUR/USD Forecast – Euro Continues to Sit In Same Area

EUR/USD Forecast Video for 22.12.22

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the course of the trading session on Wednesday, as we continue to hang around the 1.06 level. As we are getting decidedly close to Christmas, you will start to notice that the markets really don’t want to go anywhere. Because of this, it’s important to understand that the market is trying to count down the rest of the year and not necessarily put a lot of money to work. If we were to break above the highs of the candlesticks earlier this week, we do have the possibility of going to the 1.0750 level, perhaps even testing the 1.08 level. That being said, it would take some type of major announcement to get the market moving in that direction.

On the other hand, if we break down below the 1.06 level on a daily close, we could start to drip down to the 1.05 level. The 1.05 level is a large, round, psychologically significant figure, but if we were to break down through there, then we would probably see the end of the Euro rally. After all, we had tested the 61.8% Fibonacci level, and pulled back.

By doing so, it looks as if the market is likely to see a bit of trouble in this area, and you also have to think about the idea of a global recession, and that could do well for US dollar strength. Ultimately, this is a market that I think will continue to be very noisy, and therefore we may not see a real move until after New Year’s Day.

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