EUR/USD Forecast – Euro Shows Signs of Hesitation

EUR/USD Forecast Video for 29-12-2023

Euro vs US Dollar Technical Analysis

Looking at the chart, we can see that the Euro initially did try to rally against the US dollar early on Thursday, but it does seem to be running into a little bit of exhaustion at the moment, as gravity eventually comes back into the picture. We have been overextended for the last couple of days, and there is a serious lack of liquidity this time of year.

It will obviously have its part to play in price movement as well. After all, we are halfway between Christmas and New Year’s and most large traders are simply waiting until after the holiday season to get involved. All of that being said, breaking above the 1.10 level was crucial and now it has set up a potential move to the 1.1250 level above.

An area that has not only been resistant in the past but is also the 61.8% Fibonacci retracement level from the big move lower that we have been experiencing over the last couple of years. Ultimately, I do think that this is more or less going to be a buy on the dip type of situation. So, a pullback closer to the 1.10 level would be welcomed, as it could give me an opportunity to attempt to pick up cheap euros.

Anything below there starts to question the support, but it’s really not until we break down below 1.09 that I would be truly concerned about the uptrend. Whether or not it’s going to be a longer term uptrend remains to be seen, but right now I do think that this market is pretty set on the idea of trying to get to the 1.1250 level as traders focus more on interest rate markets than anything else over the next couple of months.

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