EUR/USD Price Forecast – Euro Continuing to Pressure Highs

The Euro has rallied significantly during the trading session on Tuesday as we continue to pressure the 1.20 level. That is an area that has been significant resistance previously, and of course it is a large, round, psychologically significant figure. With that being the case, if we can break above there it will of course be a significant turn of events. By breaking above the 1.20 level, it would allow the market to continue much higher, perhaps reaching towards the 1.23 handle and beyond. All things being equal, this is what I think a lot of people are anticipating with the Federal Reserve out there flooding the markets with liquidity and perhaps even more relevant in the short term, the fact that the coronavirus figures continue to rise in the United States, while falling in the European Union.

EUR/USD Video 02.12.20

The 50 day EMA sits at the 1.18 handle, and it certainly looks as if we are trying to bring that 50 day EMA higher, perhaps down to the 1.19 level which could be a significant support barrier as well. All things being equal, I think that this is a market that will find a reason to go higher regardless, so with this I have no interest in shorting the Euro anymore as we have seen so much in the way of buying lately. I anticipate that if and when we finally get the breakout above the 1.20 level, it could accelerate the uptrend going forward. If you look at the chart, you can see that it is a massive “W pattern” that we have formed.

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