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EUR/USD Price Forecast – Euro Gives Up Early Gains

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The Euro has gone back and forth during the course of the trading session on Tuesday as we continue to see a lot of confusion overall. The market is likely to continue seeing choppy behavior, and therefore I would not get overly excited about any one particular move until we get a bit more in the way of clarity. The 1.1850 level above is a major resistance, and therefore I look at that as a short-term “ceiling in the market.”

EUR/USD Video 15.09.21

To the downside, if we can break down below the bottom of the hammer from the trading session on Monday, then it opens up a possible move down to the 1.17 level. The 1.17 level is a significant area of interest, perhaps opening up the possibility of a move to the 1.16 level underneath. All things being equal, this is a market that will continue to be noisy overall, but that is not surprising at all as this pair continues to be going forward.

The US dollar course has a major influence on where we go next, as the greenback is driving where we are going overall. The market will continue to see a lot of influence coming out of the Federal Reserve more than anything else, but it should be noted that all things being equal this is a market that has been manipulated by the central bank more than once. After all, we are starting to talk about the possibility of tapering, and then perhaps even interest rate hikes late next year. Whether or not that actually happens is a completely different story, but we obviously have overall downward pressure going on during the session.

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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