EUR/USD Price Forecast – Euro Continues to Look Flat

The Euro has done very little during the trading session on Tuesday, showing signs of stagnation. This is the first sign that perhaps we could start to think about turning around after the recent pullback, but quite frankly I think it would be a little bit rushed to try to get in and go long at this point. Quite frankly, I think the market needs to see a couple of days’ worth of stability after the selloff, and we will more than likely try to go a little bit lower in the short term. The 1.2150 level has a certain amount of psychological significance attached to it, but we also have the 50 day EMA underneath and of course the 1.20 level that both could cause a bit of support.

EUR/USD Video 13.01.21

We have been in a strong uptrend for some time, and I do think that it is going to be very difficult to break above the 1.23 level and perhaps even more importantly the 1.25 level which I see as the top of that overall range of resistance. With that being the case, I like the idea of buying dips, but I think we may have plenty of time to get involved. I do not have any interest in shorting, at least not until we were to break down below the 1.19 level underneath, something that does not look like it would be easy to do, and I do not expect that to happen in the short term. I think at this point we will be best served to simply observe this pair and look for signs of support that we can take advantage of.

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