EUR/USD Price Forecast – Euro Has Quiet Day to End the Year

The Euro fell just a bit during the trading session on Friday, but then turned around to show signs of life again in order to be essentially unchanged. The market itself is in a rather tight consolidation area, so the action on Friday will not have been much of a surprise to anybody paying attention. We still find ourselves facing major resistance above at the 1.1375 level, with the 50 day EMA drifting down towards that level now. Underneath, we still see plenty of support at the 1.1225 level but have not visited that in a couple of weeks.

EUR/USD Video 03.01.22

You can make a slight argument for an ascending triangle trying to be formed, but clearly is probably something we will not happen until the middle of next week. Keep in mind that a lot of traders will have to put risk back on, but there is also the jobs report on Friday that will have a certain amount of influence as well. If we could break above the 1.14 handle, that would be a very positive sign for the Euro, perhaps sending it to the 1.16 level in the intermediate term.

On the other hand, if we were to turn around a break down below the 1.13 level, then we may revisit that bottom again, but it must be said that we have struggled to do so as of late and therefore you have to at least keep that in the back of your mind. This will be about the dollar more than anything else would be my suspicion, so pay attention to what it is doing around the world.

For a look at all of today’s economic events, check out our economic calendar.