EUR/USD Forecast – Euro Continues to Stretch Higher

EUR/USD Forecast Video for 06.12.22

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Monday as we continue to see the US dollar softened a bit. Ultimately, the US dollar is on its back foot, then by default the Euro should rally. At this point, it looks like we are going to continue to see a lot of choppy behavior, but it does look like we are also going to continue to see more upward pressure than down, at least in the short term.

The 200-Day EMA is below at the 1.04 level, and it certainly looks as if we have plenty of momentum to the upside, at least in the short term. Rates have been dropping for a while in America, and it looks like people are becoming less concerned about inflation. Keep in mind also that this week is going to be somewhat listless, due to the fact that there are so many major announcements next week, so therefore it’s possible that there might not be anything to change the overall attitude.

Regardless, we could also be looking at a lot of profit-taking at the end of the year, as the Euro has been absolutely eviscerated. Think of it this way: if you have been long of the US dollar all year, you certainly want to take some type of profit in order to reward yourself. Furthermore, liquidity will start to dissipate a bit over the next couple of weeks, so all things being equal I think this is a market that can do just about anything over the next couple of weeks. Nonetheless, it certainly looks as if the buyers are at least in control for the moment.

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