EUR/USD Forecast – Euro Gives Up Early Gains

EUR/USD Forecast Video for 23.12.22

Euro vs US Dollar Technical Analysis

The Euro has initially tried to rally during the trading session on Thursday but continues to struggle hanging on to gains above the 1.06 level. It looks like we are simply going sideways in the meantime, trying to “run out the clock” heading into the holidays. In this scenario, it’s likely that we continue to see a lot of hesitation in general, as most people are not willing to take on a lot of risk this time a year. Looking at this chart, you can see just how bullish things have been, but you can also see that we are essentially running out of momentum overall.

It’s also worth noting that the market touched the 61.8% Fibonacci retracement level, and then pulled back. The question now is whether or not that continues to cease selling pressure? If it does, then we probably go looking to the 200-Day EMA underneath. On the upside, if we break above the 61.8% Fibonacci level, and of course the 1.08 level, then it’s likely that we will continue to see a continuation to the upside, perhaps sending this market toward the 1.10 level. However, unless we get some type of shock headline over the next couple of days, I suspect that this market is probably more or less going to form some type of short-term range.

Breaking down below the 1.06 level on a daily close could bring in fresh selling, perhaps opening up the possibility of a move down to the 1.05 level, but I don’t necessarily see that happening between now and New Year’s Day. It’s possible, but it’s not anything that I’m willing to put a lot of money into.

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