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EUR/USD Price Forecast – Euro Knocking On Door of Big Figure

By:
Christopher Lewis
Published: Nov 30, 2020, 13:44 UTC

Euro continues to build a case to go higher, but still struggles with the idea of clearing the 1.20 hurdle. If and when it does, it will be a major breakout.

EUR/USD

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The Euro rallied significantly during the trading session on Monday to kick off the week but continues to struggle with the idea of the 1.20 level, which of course is a major barrier that is going to be difficult to overcome. However, it is obvious that the resiliency in the Euro is eventually going to break through this level, the question at this point is whether or not it happens now? On a daily close above the 1.20 level it is likely that it opens up the market for a move all the way to the 1.23 level before it hits major resistance again.

EUR/USD Video 01.12.20

Keep in mind that the Brexit nonsense continues and that of course can have an influence on the market but at this point in time it seems as if traders are focusing more on the idea of the Federal Reserve flooding the markets of liquidity. For what it is worth, I have seen surveys that suggests as much is 80% of the short interest in this currency pair is the retail side, which almost always loses in the end. This is not to say that we cannot pull back, but longer-term it certainly looks as if it is only a matter of time before we do break out.

To the downside, the 1.19 level is significant support, perhaps extending down to the 1.18 level. It certainly looks as if the US dollar is on the back foot in general, so a breakout in the Euro would make quite a bit of sense and could signal trading opportunities in other currency pairs as well.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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