EUR/USD Price Forecast – Euro Gives Up Early Gains for the Session

The Euro has pulled back quite a bit during the trading session on Thursday as we continue to hang about the same range that we have been in for the last couple of weeks. The 1.1375 level above is resistance and now the 50 day EMA is starting to reach towards the 1.14 handle. That being said, the market is highly resistive above, so I think is going to be very difficult for the Euro to break out. To the downside, there is a significant amount of support down at the 1.1225 level. I think in general we are going to stay between these two ranges, as we are simply going sideways and figure out what our next big move is.

EUR/USD Video 31.12.21

The next big move is probably going to be determined at the end of the Friday session the next week, what we get the nonfarm payroll announcement, which of course always catches a lot of attention and as people are looking to put money back to work for the year, I believe it sets up for a nice set up. As things stand right now, we are still very much in a consolidation area but I suppose you could say that the market is trying to “lean higher”, but no major headway has been made in one direction or the other. You could make an argument for an ascending triangle trying to form, or some type of rounded bottom. Either way, it is not until we get above the 50 day EMA that I would be interested in buying this pair. If we do fall from here, as long as we can stay above the 1.1225 level, not much will have changed.

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