EUR/USD Price Forecast – Euro Continues to Grind Against Dollar

The Euro has rallied a bit against the US dollar during the trading session on Thursday, as we are trying to overtake the 1.22 level again. That being said, we are in a larger consolidation area between the 1.20 region and the 1.23 region. The 1.20 level is offering support down to the 1.19 level, so I think we need to break down below there before we can become extraordinarily bearish. On the other hand, if we can break above the 1.23 level then I think we have to worry about resistance all the way to the 1.25 handle.

EUR/USD Video 12.02.21

Ultimately, I think it is easier to simply look at this as a range bound market that you can trade back and forth. The 50 day EMA is somewhat flat, so that also gives you another reason to think that perhaps we are going sideways. At this point, we are essentially near the middle of the range, so this could go either way in the short term, but I do think that you are going to be better off looking at this market as one that you should be using short-term charts to trade.

With this being the case, you should also keep in mind that we have a longer-term uptrend going, so this could very well end up being just a pullback that picks up more momentum for a bigger move. However, if we were to break down below the 1.19 level, that could have the bottom dropout in this pair and see the Euro go looking towards the 1.16 level after that. In general, I think we continue to see a lot of choppy and sloppy trading more than anything else.

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