EUR/USD Price Forecast – Euro Bounces From Bottom of Range

The Euro has bounced a bit during the trading session on Monday to show signs of life again, as we continue to trade in a relatively well defined range. The 1.14 level above is resistance, with the 1.1250 level being support. As long as we stay in this range, range bound traders will more than likely continue to play the market in a back-and-forth manner, but I would advise against doing so with a huge position due to the fact that liquidity could distort the market rather quickly.

EUR/USD Video 21.12.21

If we were to break out above 1.14, it is likely that we could go looking towards 1.15 handle, maybe even the 1.16 level. To the downside, if we were to take out the 1.12 handle, then it opens up the possibility of a move towards the 1.10 level underneath, which is a large, round, psychologically significant figure, and of course an area that a lot of people will be paying attention to. The markets will continue to behave like this for the next couple of weeks, as most traders are starting to worry more about holidays than anything else. With that, I would not expect anything along the lines of an explosive or even interesting move, unless of course some type of headline crosses the wire is the changes everything.

At this point in time, we will have to pay close attention to both central banks, with the European Central Bank just now suggesting that they are aware that there has been inflation, and of course the Federal Reserve looking to taper. Ultimately, it will continue to be a “push/pull” type of situation.

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