EUR/USD Forecast – Euro Rallies to Test the 200-Day EMA

EUR/USD Forecast Video for 01.12.22

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Wednesday, to reach the 200-Day EMA. By doing so, the market looks as if it is trying to figure out what to do with itself going forward. The market has been very choppy as of late, and it does make a certain amount of sense that we would see a bit of hesitation in this area.

This is especially true considering that we have so many different fundamental issues that could be coming into the forefront. After all, with the speech by Jerome Powell and the Core PCE numbers coming out over the next 24 hours, that will have a major influence on how people see the Federal Reserve behaving.

That being said, we also have the Non-Farm Payroll numbers coming out on Friday, and that of course will have a certain amount of influence on the market as well. After all, one of the biggest concerns about inflation is wage inflation right now in the United States, and that of course has people paying close attention to what the Federal Reserve may or may not do.

Ultimately, this is a market that has been consolidating over the last couple of weeks, trying to figure out whether or not this is the beginning of a move much higher, or if it is a breakdown. As things stand right now, we are still technically in a downtrend, but it’s obviously a very noisy one. With that being said, the next week or 2 will more likely than not be very crucial for where this exchange rate goes. In the short term, I like the idea of fading short-term rallies.

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