EUR/USD Forecast – Euro Settles at the 50-Day EMA

EUR/USD Forecast Video for 14.12.23

Euro vs US Dollar Technical Analysis

The euro has gone back and forth during the trading session on Wednesday as we are hanging about the 50-Day EMA. We are also sitting right around the 1.08 level, a large, round, psychologically significant figure that a lot of people will be paying attention to. Because of this, the market is likely to continue to see a lot of noisy behavior, therefore I think a lot of confusion still remains. The euro course will be heavily influenced by the European Central Bank announcements on Thursday, but we have to get through the Federal Reserve meeting between now and then and its influence on the US dollar.

Because of all of this, it is very likely that we see a lot of volatility over the next 24 hours but may find ourselves going nowhere. Because of this, you have to be vigilant and recognize that position sizing is the only thing you can do to protect your account, as there will obviously be a lot of headaches over the next 24 hours just waiting to happen. Furthermore, it’s not necessarily going to be interest rate decisions that move the market, rather the perception of what the statement says, and of course the press conference. In other words, it’s all down to perception, and therefore I think it’s almost impossible to sort out where we go over the next 24 hours, but once we get through all of that, we could get a sign as to where we go over the next several weeks.

Furthermore, you need to keep in mind that the holiday season will sap a lot of liquidity out of the market, and therefore I think the situation is that we could be struggling, and therefore it’s only a matter of time before we see a lot of odd movement, so the next 2 weeks I think will probably be driven by the next day or 2, and then after that traders will start to focus on the idea of the holidays more than anything else. The candlestick from the trading session on Tuesday was very bullish, but you can see we are still waiting to see whether or not there’s going to be a follow-through.

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