EUR/USD Forecast – Euro Continues to Trade In a Tight Range

EUR/USD Forecast Video for 26.12.22

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Friday, but as we continue to see a lot of noisy behavior in a very tight range. The 1.06 level is an area where we have seen a lot of trouble just above, and we have tried to do bounce up through that level multiple times over the last 5 or 6 trading days, only to see it fail again. Because of this, I suspect that the market is just simply “running out the clock” between now and New Year’s Day, so with that being the case, it’s likely that the only real trade here is going to be trading from a range bound short-term system.

Look at this chart, I don’t really see much of a catalyst for a bigger move, although it’s probably worth noting that we are running out of momentum, and that’s probably the most obvious thing you can say. With that being the case, I anticipate that eventually we will see some selling pressure, but I am not holding my breath for anything drastic to happen over the next couple of trading sessions.

Like I said, this is a market that is just simply waiting for the holidays, and I suspect that’s probably what we are seeing everywhere, because this time a year and becomes very difficult for traders to make bigger decisions. Quite frankly, you can get the occasional jump back and forth, only to discover that it’s simply nonsense. Ultimately, I think we’ve got a situation where the market is going to have to make a bigger decision, but this is a January question.

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