EUR/USD Price Forecast – Euro Continues to Levitate

The Euro has gone back and forth during the trading session on Tuesday as we await the results of the negotiations between the British and the Europeans. Ultimately, this is a market that certainly looks bullish, but we may get the occasional pullback based upon some type of risk. Underneath, the 1.21 area is relatively supportive, and then underneath that we have even more support near the 1.20 level that extends down to the 1.19 level. In other words, there are plenty of areas underneath that should continue to offer significant support that people will be paying attention to. I continue to buy on the dips, but I recognize that there is going to be a lot of noise.

EUR/USD Video 22.12.20

To the upside, the 1.23 level looks to be very resistive, but it is also a target based upon the bullish flag that has formed. The area between the 1.23 level and the 1.25 levels certainly has quite a bit of noise, as we have seen a lot of trading in that general vicinity. If we were to break above the 1.25 handle, then the market could go much higher. All things being equal, I do not have any interest in shorting, unless of course we were to break down below the 1.19 level underneath. That seems to be very unlikely at the moment, but if we see some type of catastrophic issue or extremely negative issue for that matter during the holiday timeframe, we could get a sudden burst lower.

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