EUR/USD Forecast – Euro Racing Toward 1.10

EUR/USD Forecast Video for 15.12.23

Euro vs US Dollar Technical Analysis

The euro has shot straight up in the air during the trading session on Thursday, as it looks like it is ready to go looking to the 1.10 level above. The European Union failed to raise interest rates, but they are suggesting that perhaps they have a long way to go with inflation, which is a stark contrast between the EU and the United States. It’s a situation where we could see a massive trend change and it’s obvious to me that the market is trying to do everything it can to rip to the upside. The 1.10 level obviously is a large, round, psychologically significant figure that a lot of people will pay close attention to. If we can break above there, it will probably bring even more buyers into the market.

Now that we are heading toward the holidays, we will have to worry about liquidity, and there is also the possibility that some profit-taking may occur. In other words, a pullback is not necessarily out of the realm of possibility, but it looks to be like the euro is ready to go higher into the end of the year, perhaps even most of next year at this rate. Eventually, the ECB may have to cut rates, but until we get that happening, this is a market that looks as if it has changed trends and will remain bullish unless of course we get some type of major “risk off” event, which could have people jumping into the US dollar.

The 50-Day EMA breaking above the 200-Day EMA recently also has people looking into this as a potential signal to go long again, as the so-called “golden cross” has kicked off. A lot of people like that, and of course it will attract a lot of technical and algorithmic traders as well. If we do break above the 1.10 level, then I think the next target could be the 1.1250 level, an area that had been important previously. All things being equal, I think we have a wild couple of days ahead, but obviously the buyers are feeling very strong at the moment.

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