EUR/USD Price Forecast – Euro Continues to Drift Sideways

The Euro has gone back and forth during the trading session on Monday to do absolutely nothing. We are sitting just above the 1.13 level and boring traders to death in this sideways action. That being said, we are in a well-defined range between 1.1225 and 1.1375 above. Because of this, the market is likely to simply go back and forth over the next couple of days as we run out the clock between now and the end of the year. In fact, I do not expect much until after we get the jobs report for January, meaning that this will be a very tough pair to trade for at least two weeks.

EUR/USD Video 28.12.21

The 50 day EMA is sitting just below the 1.14 handle, and it is grinding lower. That will add even more pressure to the top of this consolidation area, so therefore I think it is going to be very difficult for this pair to break out above there anytime soon. The European Union is currently struggling to pick itself up off the floor, and with the US economy being one of the better performing ones out there, it does make a certain amount of sense that we would see more of a downward pressure.

So I am not putting any money to work anytime soon but you can use this to give you an idea as to what the US dollar is going to be doing in general. I will more than likely use this as a tertiary indicator to trade other Forex pairs over the next couple of weeks. All things being equal, I am expecting noisy behavior more than anything else.

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