EUR/USD Price Forecast – Euro Continues to Shoot Higher

The Euro broke higher during the trading session again on Thursday, reaching towards the 1.2250 level. This is an area that of course is significant from a “midcentury standpoint”, and therefore could cause a little bit of resistance but ultimately, we will more than likely go looking towards the larger resistance barrier. The resistance barrier being the 1.23 level, based upon previous structure and the fact that we had formed a bullish flag that measures for that move. At this point, I believe that the 1.20 level continues to be supportive, based upon the fact that it was previous resistance and of course a figure that is whole.

EUR/USD Video 18.12.20

The 50 day EMA has sliced through the 1.19 level, which was the bottom of that overall resistance barrier, so I think that it offers a 100 PIP floor in the market right now that people should be paying attention to. But I doubt that we get anywhere near there unless of course something drastic happens in the markets. With that being the case, I find it very difficult to be overly bearish of this pair in the short term. Longer-term, that might be a different story but right now it looks as if we are going to try everything, we can get to the 1.23 level.

After that, things get a little bit more difficult to continue gaining, but a Brexit deal could push this pair higher, because although the British pound will be the big gainer in that situation, it obviously has an effect on the European Union outlook as well.

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