EUR/USD Forecast – Euro Continues to Look Confused

EUR/USD Forecast Video for 15-01-2024

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the trading session here on Friday. The market, of course, is trying to digest the idea of whether or not inflation is rising or falling. This is mainly due to the fact that CPI numbers on Thursday came in a little hotter than anticipated, but the PPI numbers on Friday came in weaker than anticipated. This shows a lot of confusion, and therefore it makes sense that we are going to continue to consolidate in this area. The 1.10 level above is a significant resistance barrier, and if we could break above there, then the 1.1150 level would be the next target. Underneath, we have the 1.09 level offering support, right along with the 50-day EMA.

All things being equal, I don’t know that we go anywhere from here. And it does make a certain amount of sense considering that inflation is all over the place. The ECB suggests that perhaps they are going to stay tight, but I wonder how long that can actually be due to the fact that the German economy itself is heading into recession. So, I think traders are trying to start to sniff that out. Ultimately, this is a market that doesn’t have anywhere to be, so you don’t want to force a trade.

Unless you’re a short-term back and forth range-bound trader, there isn’t a whole lot here for you to sink your teeth into, and therefore, you could use it as a sign of strength or weakness for the US dollar, but beyond that, I really don’t have a whole lot to do here, at least until we break above 1.10, or if we break down below the 50-day EMA. Until then, I am a bit hesitant, and I don’t think that there are too many opportunities outside of something like a 15 minute trade. If that’s what you’re doing, it’s fine and quite frankly this might be the perfect market for you as it is so well defined as far as its boundaries are concerned.

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