EUR/USD Price Forecast – Euro Continues to Show Signs of ResistanceThe Euro has initially tried to rally on Thursday but gave back quite a bit of the gains as the area between the 1.19 and the 1.2 levels is massive resistance.
The Euro initially tried to rally during the trading session on Thursday but then gave back quite a bit of the gains in order to form a less than stellar looking candlestick. Ultimately, we have been seeing this market rally and find buyers at higher levels along the way. The 50 day EMA has offered significant support, so right now I think we are in the midst of a “squeeze” in general. This being the case, the market does look like it is eventually going to try to get to the 1.20 level, as it seems like everybody is bailing on the US dollar.
EUR/USD Video 27.11.20
That being said, there are concerns out there that the European Union locking a handful of countries will continue to weigh upon the economy, but ultimately there is a question as to whether or not we get enough global growth to push the Euro higher. At this point in time, I think that it is going to be choppy but upward trading again, as the Federal Reserve is likely to keep its loose monetary policy going forward, especially as the Federal Reserve Meeting Minutes have recently stated. All things being equal, I think that what we are looking at is a scenario where you buy the dips, at least until something changes drastically.
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A lot of the pundits out there are looking for the Euro to finally break out over the next couple of months, and it certainly looks as if we are going to try to make that happen, but it is going to be extraordinarily noisy between now and then. Short-term trading continues to be the only way to deal with this.
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