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EUR/USD Weekly Price Forecast – Euro Continues Same Consolidation

By:
Christopher Lewis
Published: Dec 24, 2021, 14:38 UTC

The Euro has rallied during the course of the week, but as you can see it is still very much in the same consolidation area it has been in for quite some time.

EUR/USD Weekly Price Forecast – Euro Continues Same Consolidation

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The Euro has rallied a bit during the course of the trading week but has not been able to break out of the range that has been in for a little over month. That is quite typical for this pair, it will just simply do nothing for long periods of time, and then suddenly make a move. Right now, I think a lot of people are focusing on the European Central Bank, because it is just now talking about inflation. They are nowhere near tightening, so I do not think that you can expect a lot of help from the central bank, but it is something worth paying attention to.

EUR/USD Video 27.12.21

If we break above the 1.14 handle, then I think that the Euro goes looking towards 1.15 handle, followed by the 1.16 level. If we break down below the 1.12 handle, then that opens up a move down to the 1.10 level where we have a lot of psychological and structural support. Either way, I think you have to wait for some type of break out to get involved, because quite frankly this is a market such as grinding away and killing time at the moment. Looking at this chart, it is easy to see that there is a lot of resistance just above, based upon the multiple wax that have formed over the last month or so. Because of this, I still think that the Euro is probably going to struggle in general, but I am not willing to put money to work until we break out of this little range that we have been in.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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