EUR/USD Weekly Price Forecast – the Euro Continues to Consolidate

The Euro has gone back and forth during the course of the week again, as it had the previous two weeks. At this point, at looks like the 1.13 level will continue to be important as far as a magnet for price is concerned, as traders try to figure out whether or not the Euro is oversold or not. Ultimately, if we can break out of the purple box that I have on the chart, that could give us a little bit of a “heads up” as to where we are going next. If we rally to the upside, then the 1.15 level should offer a significant amount of resistance. On the other hand, if we break down below the bottom of the candlestick from two weeks previous, then it opens up a flood of selling, perhaps down to the 1.10 level.

EUR/USD Video 13.12.21

A lot of this is going to come down to the strength or weakness of the US dollar in general, and what yields are doing. At this point, there seems to be a bit of a “push pull” as to where rates are going in America, as bond markets are starting to price in the idea that perhaps the Federal Reserve is making a mistake as far as tightening is concerned. Will see how that plays out, but right now this is a very interesting chart to me because it has been so choppy, yet indecisive. This chart just screams that once we do get a break, it is going to be a big deal, perhaps a longer-term trade that we can hang onto.

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