EUR/USD Price Forecast – Euro Rises After ECB Meeting

The Euro has rallied during the trading session on Thursday to reach towards 1.1350 level, an area that I think would be the beginning of resistance. If we can break above the 1.1375 handle, then we will make a serious attempt at the 1.14 handle. Above there, the market is likely to go quite a bit higher.

EUR/USD Video 17.12.21

While this has been a nice run higher during the session, we have not technically broken out of anything, so it is worth noting that the trend is still very much to the downside, but it does seem as if we are trying to build up continued pressure. The market continues to be one of noisy behavior, so I would anticipate that we will probably see more back-and-forth than anything else. If the US dollar gets a bit of a bid against other currencies, that will almost certainly come into the picture here as well, thereby putting downward pressure on this pair, perhaps sending it back down to the 1.1250 level.

Now that we have gotten through central bank noise from Europe, Great Britain, and the United States, by the end of this week we will start to enter holiday trading, meaning that there will be a lot less liquidity. In that situation, markets are generally quiet, which leads me to believe that we will be somewhat sideways. However, if there is a sudden large order in the marketplace, it can cause a short-term spike so therefore you do not want to have a huge position on. As things stand right now, I still look at this more or less from the perspective of trading inside the lavender box I have on the chart.

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