EUR/USD Price Forecast – Euro Continues Same Consolidation
The Euro has had a very tight range during the trading session on Friday, as one would expect. Traders are not so worried about putting money to work right now, they are more worried about holidays so therefore liquidity becomes a major issue. Currently, the 1.1375 level above is significant resistance, just as the 1.1225 level underneath is significant support. I think we continue to go back and forth between these two levels between now and the beginning of next year. Quite frankly, there is nothing out there to make this pair move that I can see.
EUR/USD Video 27.12.21
Because of this, if you are a range bound short-term trader you might be able to take advantage of this, but if you are looking for a bigger move you will be sadly disappointed. Keep your position size reasonable, because the lack of liquidity can cause sudden spikes on an errant headline, although that is much less likely to happen in this pair that it is several other ones. We have been in a well-defined range for a while, and I just do not see that changing anytime soon, at least not until we get through the nonfarm payroll number in January.
Further adding more resistance above is the 50 day EMA, as it is sitting at the 1.14 level and drifting lower. It has recently been relatively reliable, so that of course will capture some of my attention once we get there on any rally. All things been equal, I suspect that I probably will be trading this pair much between now and those employment numbers coming out of the United States in the first week of January.
For a look at all of today’s economic events, check out our economic calendar.