EUR/USD Price Forecast – Euro Continues to Bang on Ceiling

The Euro has rallied to kick off the week, slamming into the crucial 1.19 level, an area that has been important more than once. At this point, it looks as if the market is still trying to figure out what to do with itself longer-term, although it does certainly look a little bit more bullish than bearish. Having said that, there is a significant amount of resistance between the 1.19 level and the 1.20 level, and I think it is going to take something rather special to finally break through there.

EUR/USD Video 24.11.20

In the meantime, I think we will continue to see selling pressure at the big figure, because quite frankly the next problem that you are going to run into is that the European Central Bank is likely to jawbone the value of the Euro lower if we do get closer to the 1.20 level as they do not like that level at all. With this being the case, I think you continue to fade weakness on short-term charts but as far as a longer-term trade is concerned, it is probably a bit difficult to make one right now. Further exacerbating the entire situation is the fact that the week is cut short by the Thanksgiving holiday, and therefore a certain amount of liquidity will not be present.

Looking at this chart, the 50 day EMA is a logical target if we do get some type of break down, and at this point I would be a bit surprised if we break down below there unless of course we get some type of major “risk off event”, which of course is almost always possible these days.

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