EUR/USD Price Forecast – Euro Breaking Higher

The Euro has rallied again during the trading session on Tuesday to break above the crucial 1.22 handle, an area that has been massive resistance. At this point time, the market is likely to go looking towards the 1.23 handle. The 1.23 level is an area that has been massive resistance in the past, so I think we will continue to see upward momentum, and short-term pullback should be buying opportunities. All things being equal, the Euro continues to benefit from a weakening US dollar, which seems to be the overall theme.

EUR/USD Video 19.05.21

At this point, I would anticipate that the “floor in the market” is starting to move higher, so I believe at this point is probably closer to the 1.2050 handle, but ultimately the 1.21 level would be supportive as well, and the fact that this candlestick is so long suggests that we are almost certainly going to see some type of follow-through, so at this juncture I am more than willing to get long on signs of momentum and a pullback. If we can break above the 1.23 level, then this market most likely takes off towards the 1.25 level which is the target of a lot of institutions and analysts around the world.

All things being equal, I tend use this pair as where we could be going next back next with the US dollar overall. With that being the case, I like the idea of buying the dips so far, and if this pair continues to rise perhaps shorting the US dollar against something that moves a little quicker.

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