EUR/USD Price Forecast – Euro Continues to Drift Lower

The Euro has gone back and forth during the trading session on Tuesday, drifting ever so slightly lower again. At this point, the market should be looked at through the prism of a consolidation area, with the 1.1375 level offering resistance, especially as the 50 day EMA is now crossing that level again. On the downside, the support is found down at the 1.1275 level, an area that we have bounced from a few times. Because of this, the market is likely to see a lot of back and forth, but the question now is whether or not we are going to reach the lows again? The one thing that I can notice on this chart is that it seems like we are squeezing higher but it still a little bit early to make that call.

EUR/USD Video 05.01.22

With the jobs number coming out on Friday, that will almost certainly have some type of effect on this pair, and it could send us out of this box. If we break down, then we could be looking at a move towards the 1.10 level underneath. On the other hand, if we do break to the upside, it is likely that we could go looking towards 1.16 level where we sold off from to begin with. I anticipate that the next couple of days will probably be more chop than anything else, so keep that in mind if you do plan on playing this market. I would think of it more through the prism of a short-term range bound market more than anything else. Ultimately, we have to make a decision, but I do not think we’re going to make it the next few days.

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