EUR/USD Price Forecast – Euro Recovers Slightly Again on Tuesday

The Euro has rallied just a bit during the course of the trading session on Tuesday to continue to show signs of hesitation. We are consolidating which makes quite a bit of sense considering that the Federal Reserve is in the midst of a two-day meeting. In other words, we are waiting to see whether or not the Federal Reserve is going to accelerate tightening or not. If they do, then it is possible that we break down. On the other hand, if we see the Federal Reserve speak a bit dovish in its overall tone, that could send the Euro much higher.

EUR/USD Video 15.12.21

Nonetheless, it is the time of year where we probably will not see much in the way of volume, at least not by the end of this week. The last couple of the weeks of the year tends to be very skittish to say the least, so I think we probably spent most of the time between now and New Year’s Day just bouncing around. Most traders around the world will be focusing more on holidays than trying to invest in what could be a very dangerous market. With this being the case, keep your position size reasonable but recognize that more likely than not we have a bit of a range bound trading ahead of us. With that in mind, you can take advantage of it, but you also need to be cautious that we could get a sudden blast in one direction or the other as corporations come into balance books at the end of the year and what will be a low-volume environment.

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