EUR/USD Price Forecast – Euro Continues Sideways Consolidation

The Euro initially drifted a little bit lower during the trading session on Monday but found buyers underneath the turn things around. All things been equal though, it looks like the 1.1250 level is offering short-term support, while the 1.1350 level is offering short-term resistance. When you look at the chart, you can see just how little we have made in the way of progress, and therefore to me this looks like “dead money.” This is especially true as we are heading into the end of the year, as liquidity then becomes a bit of an issue. Ultimately, I believe that this is a market that will continue to see noisy behavior more than anything else.

EUR/USD Video 14.12.21

Keep in mind that the Federal Reserve has a two-day meeting, so they could throw the markets around based upon what they see, but at this point in time I suspect that we are starting to settle into a bit of a range to in the year. Once we get closer to Christmas, keep in mind that the liquidity in the markets becomes an issue, and that we will probably see very little in the way of momentum, but once most traders are gone, then you can see sudden spikes in both directions, which will essentially mean nothing. The 1.12 level underneath continues to be important, because if we can break down below there then we could go racing towards 1.10 level. To the upside, I would anticipate that the 50 day EMA could come into the picture as resistance, so keep that in mind as well.

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