EUR/USD Price Forecast – The Euro Continues to Show Noisy Behavior

Euro vs US Dollar Technical Analysis

The Euro has fallen a bit during the trading session on Thursday, only to turn around and rally into the 50 Day EMA. By doing so, the market looks as if we are trying to figure out whether or not the market is going to continue to see bullish pressure, or if it’s going to break back down. The Friday CPI numbers in the United States will be a major influence as the markets are paying close attention to inflationary concerns, so, therefore, it does make quite a bit of sense that we would see this market bounce around.

If we get strong CPI numbers, it’s likely that we could break down below the recent consolidation and reach the 1.05 level. After that, the market more likely than not will go looking to reach the 1.04 level. On the upside, if the market was to turn around and take out the 1.08 level, I see a lot of noise between there in the 1.09 level, so it’s not until we break above there that the buyers will have shown that they have taken out the sellers and it looks like he could go as high as 1.12 above.

Bond yields will come into play as per usual, so it does make quite a bit of sense that we would see choppy volatility in this area. Ultimately, I think this is more or less best traded from a short-term sideways perspective, recognizing that we have no real sense of directionality at the moment. The downward momentum has been rather relentless until recently, so it looks like were about to make another big decision.

EUR/USD Price Forecast Video 09.06.22

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