EUR/USD Price Forecast – Euro Continues Go Back and Forth After CPI

The Euro has gone back and forth during the course of the trading session on Friday as CPI numbers came out at the highest rate since 1982 in the United States. That being said, the market is simply bouncing around trying to figure out what to do next. It is very likely to see a lot of noisy behavior, with a significant amount of resistance above at the 1.1375 area. The market is more than likely going to see a lot of selling pressure there, but if we were to break above there then it is likely that we could go looking towards the 80 day EMA above. After that, the market would possibly go looking towards the 1.15 handle.

EUR/USD Video 13.12.21

Regardless, we are still very much in a downtrend, and you could make an argument that we are forming a bit of a rising wedge, but regardless, I think what we are seen as a bit of a basing pattern, trying to figure out whether or not Europe is going to get its act together. Ultimately, this is a market that I think will continue to offer plenty of selling opportunities above, but in the short term it looks like we are trying to correct what had been a very strong oversold type of situation. The markets will continue to see a lot of choppy behavior heading into the holiday season, but at the end of the day this is probably a lot of Brownian Motion more than anything else. In other words, I do not expect much out of this market but sideways noisy behavior.

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