EUR/USD Price Forecast – Euro Continues Same Consolidated Mess

The Euro fell initially during the trading session on Wednesday, but has bounced a bit to form a little bit of a hammer. Regardless, this is the market doing the same thing has been doing for the last several weeks so I would not read too much into this candlestick other than their still a lot of position squaring going on into the end of the year. I would not expect big moves, nor would I put any money to work in this market is so clearly compressed and waiting for some type of catalyst.

EUR/USD Video 30.12.21

To the upside, the 1.1375 level continues to be resistance, while the 1.1225 level underneath continues to be massive support. I do not see that changing anytime soon but we do have the jobs number coming at the end of next week and that can have an influence on this pair. Quite frankly, that is probably what is going to take to move the Euro against the greenback in the short term. The only other situation I could see is that some type of outlier headline crosses the wires suddenly. All things been equal, this market has decided to settle in this range to finish the year, and there is no point in trying to argue with it or even trying to pick up a few pips here and there.

I know the natural proclivity of newer retail traders is to lever your position size as big as you can and try to scalp a few pips here and there. However, it should be noted that behavior is one of the best ways to lose money and one of the worst feelings is to do serious damage to your account at the end of the year.

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