EUR/USD Forecast – Euro Shows Volatility

EUR/USD Forecast Video for 04.12.23

Euro vs US Dollar Technical Analysis

The euro has gone back and forth during the course of the trading session on Friday, as we continue to see a lot of noisy behavior. Ultimately, this is a market that I think continues to see a lot of noisy behavior of the next couple of days as we are trying to sort out whether or not the uptrend can continue. If we can break above the top of the candlestick for the Friday session, then it’s very likely that the market could go looking to the 1.10 level above.

Speaking of the 1.10 level, it’s an area where we have seen a lot of resistance recently, and it does make a certain amount of sense as it is a large, round, psychologically significant figure. Breaking above that level would obviously be an extraordinarily bullish sign and could send this market toward the 1.1250 level. That’s an area where we had seen a massive swing high in the past, so I think it all lined up quite nicely.

However, if we were to drop down below the 1.0850 level, then it’s possible that we could start to see a significant breakdown. A lot of this will come down to the interest rate situation in the United States, which of course will attract a lot of attention as it has been a major driver of where we have been going over the last couple of weeks. It’s worth noting that the Thursday session was quite brutal, and the fact that Friday is stabilizing does look like it could help the bullish case, which has been quite prevalent.

With this being the case, the market is going to continue to see a lot of noisy behavior, and therefore I think you have to look at this through the prism of whether or not we can hang onto the support just below. I suspect in the next couple of days we should have a little bit of clarity. A little bit of patience probably goes a long way in this scenario, so by all means, be cautious with your positioning and more importantly, your position size.

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