The euro has been a great way to watch money get spent sideways for a while, and I suspect that the very beginning of January will be more of the same. Check out our EURUSD monthly forecast here:
Enter your emailKeep in mind that a lot of traders will be looking to put risk on heading into the first week or so into the year, so it is then when you start to see flows picked back up in the currency markets.
The euro has been a great way to watch money get spent sideways for a while, and I suspect that the very beginning of January will be more of the same, and not enough to volatility. However, once we get the jobs number coming out for January, then we might be able to see a little bit of momentum built up in one direction or the other.As things stand right now, the market simply has nowhere to go, with the 1.1375 level being massive resistance, and the 1.1225 level being massive support.
We are still very much in a downtrend, and it is worth noting that the 50 day EMA is hanging about the 1.14 handle, making it even more difficult to break out. Unless that jobs number is horrible for the US dollar, I suspect that any move to the upside will probably be sold into. Keep in mind that the Federal Reserve begins tapering its bond purchases next month, and that is going to have an influence on the value of the US dollar itself.
On the other hand, if we clear the 1.14 level, then the next target would be the 1.15 level. Clearing that would be a major victory for the euro bulls, allowing them to recapture theagain. That is not my base case scenario, but it is something that I have to keep in the back my head. Keep in mind that a lot of traders will be looking to put risk on heading into the first week or so into the year, so it is then when you start to see flows picked back up in the currency markets.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD Forex Signal: More Gains PossibleHappy New Year 2022! Start your trading week placing trades for $EURUSD with our TradingSignals here -
Read more »
Marvel Fans Can't Wait Until Morbius Comes Out Later This MonthThe calendar officially reads January 2022, which means Sony's Morbius is due to hit theaters any [...]
Read more »
Weekly Forex ForecastStart the week of January 3, 2022 with our Forex forecast focusing on major currency pairs here.
Read more »
Trading Support and ResistanceGet our trading strategies with our monthly \u0026 weekly forecast of currency pairs worth watching using support \u0026 resistance for the week of January 3, 2022.
Read more »
Gold Price Forecast: XAU/USD eases from six-week high on USD rebound, $1,834 in focusGold Price Forecast: XAU/USD eases from six-week high on USD rebound, $1,834 in focus By anilpanchal7 Gold Coronavirus Fed Commodities RiskAppetite
Read more »
GBP/USD Price Analysis: Bears return after 100-DMA caps the winning streakGBP/USD is keeping its range around 1.3500, undermined by the US dollar’s sharp comeback amid discouraging news starting out the first trading of 2022
Read more »