EUR/USD Price Forecast – Euro Gives Back Early Gains

The Euro initially rallied during the trading session on Monday, but in the lack of volume and liquidity, the reality is that the market would be hard-pressed to get something going. I think that is going to be the case until we get past New Year’s Day, perhaps even the first employment figures for the month of January. In other words, I think at this point in time there is little impetus to push the Euro higher, as traders are probably looking to take a little bit of a break. Furthermore, the European Union is going to continue to see a lot of questions about the overall health of the economy. After all, the coronavirus lockdown certainly are doing no favors for the continent.

EUR/USD Video 29.12.20

The question now is whether or not the ECB is going to become a little bit more aggressive with monetary policy. At this point, it seems very likely so perhaps the Euro needs to pull back a bit. It certainly looks as if the 1.23 level above is an area of resistance, perhaps extending to the 1.25 level. Ultimately, this is a market that I think continues to see a lot of noisy trading more than anything else so if you are a short-term range bound type of trader, you may do okay here, but really at this point in time I do not see the need to put a lot of money into the market until after the Non-Farm Payroll figures after the new year. Between here and there, there probably is in a whole lot to do other than trade small moves.

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