EUR/USD Price Forecast – Euro Bounces From 50 Day EMA

The Euro has rallied rather significantly during the trading session on Tuesday to bounce from the 50 day EMA. This does suggest that perhaps the uptrend is still very much intact, but currently I do not like placing trades at this spot as we do not have significant support or resistance in the near term. I believe that the 1.20 level underneath is much more important than what we are seeing tested right now, thereby having me look at this market as one that probably grinds back and forth in this general vicinity.

EUR/USD Video 20.01.21

To the upside, we could get his high as the 1.23 level and still not change much. I believe that we are essentially stuck in a 300 point range, something that is quite common for the Euro after all. We have seen a lot of back and forth and I think really at this point most of what is driving this market is the idea of stimulus coming out the United States, and at this point in time it looks to be massive. However, one should not forget that the ECB is more than likely going to do quite a bit themselves, so we will have to see whether or not this can continue to the upside and break above the massive resistance that starts at the 1.23 handle and extends all the way above at the 1.25 handle. At this point, I do not see that happening anytime soon.

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