EUR/USD Forecast December 17, 2013, Technical Analysis

The EUR/USD pair tried to rally during the session on Monday, but as you can see failed at the 1.38 level yet again. This area has been resistance for some time now, and as a result we think that this market will continue to struggle as we get close to this level. This level should continue to be of interest to the market, and although we could not break above it, we do think we will eventually do so.

Above the 1.38 level, we think this market could finally break out to the outside and target the 1.40 level, an area that we think will eventually be had. This resulting candle for the session on Monday is a shooting star, and as a result it looks like the market could pullback in the meantime, perhaps falling to the 1.36 level. That area should be significantly supportive, and as a result we are more than willing to buy supportive candles down near that area.

That area should continue to be an area that buyers stepping to the marketplace, but we also recognize the fact that we are getting towards the end of the year, and therefore market movements will probably be somewhat subdued. Nonetheless, we believe that the 1.36 level is the “floor” in this market going forward, and as a result we really like buying that area.

The Federal Reserve will continue to be in focus by most market participants, and the question then is whether or not they can taper off of quantitative easing. This of course is in reaction to the jobs numbers, and whether or not the Federal Reserve feels that the US economy is strengthening enough to do so. The more we get strong economic numbers are United States, and especially in the jobs realm, the better off we are going to be as far as the possibility of tapering. This in turn will drive the market lower, but we believe that the market is still betting on the Federal Reserve not been able to do anything for several months. If that’s the case, the Euro should continue to appreciate over the longer term.


EUR/USD Forecast December 17, 2013, Technical Analysis

Written by FX Empire