EUR/USD Forecast – Euro Struggling With the Same Area

EUR/USD Forecast Video for 07.12.22

Euro vs US Dollar Technical Analysis

The Euro rallied a bit during the trading session on Tuesday, reaching the area above the 1.05 level, but it looks as if it is going to continue to see a little bit of hesitation in this area. With that being the case, it does make a significant amount of sense that we would see further consolidation. This is an area that previously had been very difficult to get above, and we even formed a massive shooting star at the close of business on Monday. At this point, the market is likely to continue to be noisy, especially as there is a hammer from the previous session. Over the longer term, we are about to make a bigger move given enough time.

If we turn around and take out the 200-Day EMA, then it’s likely that we could go down to the 50-Day EMA. On the other hand, if we turn to take out the 1.06 level, then I think the Euro has much further to go. Ultimately, a lot of this is going to come down to the interest rates in the United States, so with that being the case I think you have to look at the 10 year note, to give you an idea as to what the markets are going to do.

Higher interest rates in America of course are good for the US dollar, but then again if rates drop too quickly, it could show that money is flowing into the bond market as well, which is also good for the US dollar. Ultimately, I think we have a bit of volatility ahead of us, so you need to be very nimble with your trading position, and recognize that this may be more of a range bound market over the next couple of days.

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