EUR/USD Price Forecast – Euro Continues Same Range Bound Trading
The Euro has pulled back just a bit during the course of the trading session on Wednesday but has turned around to recapture the 1.13 level. At this point in time, we are stuck in a range bound situation, and I think that is going to be where we find ourselves between now and the end of the year. Currently, the 1.1375 level is significant resistance, while the 1.1225 level is significant support. All things being equal, this is a market that I think is going to continue to hang about, so I think we have a little bit further to go to the upside before selling off again.
EUR/USD Video 23.12.21
When you look at this chart, you can see that the 50 day EMA is reaching towards the 1.14 handle, so I think at that point in time we would see a massive amount of resistance as well. All things been equal, this is a market that I think has nowhere to be but that is not necessarily anything new for this pair. Ultimately, I think we simply are going to be looking for signs of exhaustion above that we can short, but I keep my position size small this time a year as liquidity could be a major issue. A sudden spike can be very expensive due to the liquid markets, so you do have to be cautious about that.
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I do believe that we will get a bigger move, but it is probably going to be in January of next year, because quite frankly it is a bit much to ask of the market to get overly excited about anything between now and New Year’s Day.
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