EUR/USD Price Forecast – Euro Stabilizing

·2 min read

The Euro went back and forth during the course of the trading session on Wednesday as we continue to see a little bit of hesitation to go lower. We have been very noisy as of late, and I think we will continue to try to build up a little bit of a base as the Euro had been so oversold. To the upside, the 1.15 level should offer a bit of a “ceiling in the market” and could even be a target if we break above the 1.14 level. It is also worth noting that the 50 day EMA sits at that level, so I think it will come into the picture as well.

EUR/USD Video 02.12.21

The Euro has been oversold so this bounce is to be expected. The question now is what happens after the jobs number comes out? This comes out on Friday, so it does make quite a bit of sense that the next couple of days might be more noise than anything else. It is also worth noting that Jerome Powell has suggested that inflation was a real thing finally, so now the market will be looking for where we go next. The Federal Reserve is notorious about calling the top on something, and it is worth noting that inflation has decelerated in some of the readings as of late.

To the downside, the 1.1250 level offer support, just as the 1.12 level does. In general, I think this is a market that continues to be noisy, but in a very short-term move. Having said, I think that this rally is probably necessary, but I will be a seller of any rally that shows a significant amount of exhaustion.

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

This article was originally posted on FX Empire


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