EUR/USD Price Forecast – Euro Pulls Back to Continue Noisy Consolidation

The Euro pulled back just a bit during the course of the trading session on Thursday as we continue to consolidate just below the 1.14 handle. It looks as if we are trying to form a little bit of a rising wedge, but I think it is early to make that assumption. At this point in time, the 1.14 level continues to be crucial, so as long as we stay below there, I think the market is probably going to continue to be somewhat threatened. Given enough time, I think we will make another run and an attempt at breaking above the 1.14 handle, which could have this market looking towards the 50 day EMA next.

EUR/USD Video 10.12.21

To the downside, the 1.12 level continues to be a major floor the market, and it could attract a lot of attention by traders as we continue the overall downtrend. Keep in mind that the interest rate differential between the European Union and the United States will continue to come into the picture, but now the question is whether or not Europe is starting to recover? I think because of this we will see a lot of noisy trading in the short term, so I would expect more of a volatile choppy situation than anything else. Keep in mind that as we head into the second half of December, liquidity becomes a major issue and therefore we could get sudden and violent moves seemingly out of nowhere. Position sizing will be crucial.

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