EUR/USD Price Forecast – Euro Breaking HigherThe Euro had a bumpy ride on Wednesday, as the U.S. Senate flipping over to the Democrats crushed the US dollar.
The Euro has peaked above the 1.23 level only to find a lot of selling above that handle. At this point in time, the markets do not really know what to do with the idea of a new democratic government in the United States, so there has been a lot of volatility early in the session. Ultimately though, this should mean that the US dollar continues to struggle, and therefore it should be good for this pair. Peaking above the 1.23 level was the first “shot across the bow” in trying to get to the 1.25 handle, and the election could be the catalyst to make this happen. Clearly, most traders were on the wrong side of this trade if it does in fact end up being a “blue wave” in the US government.
EUR/USD Video 07.01.2021
To the downside, I see plenty of support extending all the way down to at least the 1.20 level so do not have any interest in shorting this pair. This doesn’t even necessarily mean that I like the Euro overall, it is more about the US dollar at this point. If we can continue the momentum, this should send this market much higher. It is worth noting that although the upward pressure has been relentless, it has not exactly been parabolic so there should be an opportunity to continue going higher based upon US dollar selling. I do not think it is going to be easy, but I believe that we will continue to grind to the upside overall. With this, dips should also offer plenty of value the people are willing to take advantage of.
75% of retail CFD investors lose money
For a look at all of today’s economic events, check out our economic calendar.