Christopher Lewis
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The Euro has rallied a bit during the trading session on Tuesday as we continue to see the US dollar sell off. Because of this, the market is likely to continue to see upward momentum, as the greenback is most certainly on its back foot against almost everything. With that in mind, I think that it is probably only a matter of time before we break above the 1.22 handle, it is worth noting that there was not much of a pullback on Monday. This suggests that there is still plenty of momentum out there to drive this pair higher.

EUR/USD Video 12.05.21

To the downside, the 1.20 level is significant support that I think will continue to hold the market up, as we have the 50 day EMA is sitting in that same vicinity as well. If we were to break down below there, then it could be a sign of further negativity. At that point, I would anticipate that the Euro could go looking towards the 200 day EMA, which sits at the 1.1850 level. At this point in time, I think that people would begin to question the overall trend. You could even make an argument that we have just formed a little bit of a bullish flag, so I think at the end of the day it is likely that we will continue to see upward pressure and eventually break above the 1.22 handle to go looking towards the 1.23 handle. At this point in time, that is the most likely of outcomes based upon the momentum that we have seen lately. That being said, I would expect a bit of a fight just above.

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