EUR/USD Price Forecast – Euro Continues to Grind Back and Forth

The Euro has gone back and forth during the trading session on Tuesday as we tried to break out to the upside and above the 1.22 handle. That is an area that continues to be very difficult to get above, but if and when we do it is likely that we go looking towards 1.25 handle. To the downside, the 1.20 level underneath should offer a significant amount of support, perhaps extending in a “zone of buying” down to the 1.19 level. The 50 day EMA is starting to slice into that area as well, so that should offer quite a bit of support as well.

EUR/USD Video 16.12.20

The Euro is benefiting from the possibility of more stimulus coming out the United States, and therefore the Euro is starting to pick up momentum. Having said all of that, the market is probably going to be choppy and bullish would be the best way to describe everything that is going on here. The market will also have to deal with Brexit, which obviously has a major influence on the British pound, but you need to keep in mind that the European Union will obviously have to suffer some ripple effects as well. Ultimately, this is a “buy on the dips” type of market, and therefore that is probably what you will have to do, drill down to shorter time frames and pick up little pullbacks as they offer value occasionally.

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