EUR/USD Price Forecast – Euro Continues Choppy Behavior

The Euro has gone back and forth during the course of the trading session on Wednesday as we await the FOMC coming out of the Fed. That being said, there probably is very little coming out of that meeting, so I think at the end of the day this will probably continue to hang about in this area. The 1.17 level has offered little bit of support, but if we break down below there then I think we go looking towards 1.16 level which has been even more important in the past.

EUR/USD Video 23.09.21

On the other hand, if we turn around a break above the inverted hammer from the session on Tuesday, then it is likely that the market goes looking towards the 1.18 level. Either way, I think we are very choppy and sideways at this point, so all things being equal I think you probably are looking at a market that desperately needs to see some type of break out or break down.

Pay close attention to the US Dollar Index, as it is a major indicator of where we go not only in this currency, but several others. At this point, it is all about the US dollar, and very little to do with the Euro itself. Both of the central banks are talking about tapering, which seems to be very unlikely. That being said, the market is likely to continue to see indecision, so therefore I think that is probably how you have to look at this currency pair. In other words, I think your time is better spent and other markets, but this pair could be more or less a tertiary indicator.

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