EUR/USD Price Forecast – Euro Breaks Out

The Euro has broken out to the upside during the trading session on Tuesday, breaking above the 1.19 level. This is an area that has been significant resistance in the past, so it makes quite a bit of sense that breaking above there is a very strong sign. At this point, the market probably goes looking towards the 1.20 level above. That is a large, round, psychologically significant figure, and that of course will attract a certain amount of attention. That being said, based upon the bullish flag that we have just broken out of, I believe that we are going to go looking towards the 1.25 level.

EUR/USD Video 19.08.20

The Federal Reserve of course continues to flood the market with its currency, and therefore that is going to continue to drive down the value of the US dollar. Ultimately, I think that we go much higher, as this is a longer-term trend that has quite some distance to travel. Ultimately, I have no interest in shorting this pair and we should now see the 1.17 level offer a bit of a “floor” in the market going forward.

With that, I like the idea of buying dips, as well as buying this breakout. Quite frankly, the trend has been changing for some time and now that we have cleared this major barrier, there is not much to stop the market from going much higher. The 50 day EMA is now above the 1.15 level and should start reaching towards the 1.17 level which of course is the previous support. That being said, it looks like the uptrend continues.

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