EUR/USD Price Forecast – Euro Floundering

The Euro has initially tried to lift a bit during the trading session on Tuesday, but quite frankly does not seem to be ready to make a bigger move. Nonetheless, we are in a larger consolidation area, and as we are sitting right in the middle of it, I do not necessarily think that putting a lot of money to work as the smart thing. The 1.1375 level above is significant resistance, especially as the 50 day EMA is racing towards that level.

EUR/USD Video 22.12.21

Underneath, the 1.1225 level is significant support, and therefore I think any move towards that area probably attracts a little bit of buying pressure. That being said, as liquidity disappears, we could in theory at least get some type of spike, suggesting that perhaps if we break above the top of the range, we may shoot towards the 1.15 handle.

On the other hand, if we break down below the 1.12 level, it opens up the possibility of a move down to the 1.10 level underneath which of course is a large, round, psychologically significant figure. That is an area that could be a magnet for a lot of noise, but at the end of the day I think that the market is simply going to bang around in the next couple of weeks. I think that we start to get momentum next year, so more likely than not this is going to be a lot of short-term back-and-forth trading with small positions more than anything else. The later we get into the week, the less likely I am to be trading.

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