EUR/USD Price Forecast – Euro Looking a Bit Extended

The Euro has rallied a bit during the trading session on Thursday but is getting a bit over is stretched at this point in time. The 1.2150 level continues to be an area that people will pay attention to, and we could continue to go higher. However, at this point in time I think that the market is getting a bit stretched and the fact that the Friday session is the Non-Farm Payroll announcement, that might be the catalyst. At this point, any significant pullback should be thought of as a potential buying opportunity, especially as the 1.20 level being broken out of was a major signal.

EUR/USD Video 04.12.20

All this being said, it is not until we break down below the 1.19 level that I would be concerned about the Euro at this point. I believe it is much more likely that we go towards the 1.23 level above, as it is a major breakdown point from previous trading. Having said that, I still think you need to look for value but clearly this is a “one-way trade” so you need to keep that in the back of your mind. What I am hoping for is that Friday produces some type of massive pullback in a bit of a “knee-jerk reaction” to the numbers that senses pair lower, that I will then intern start buying into. Having said that, there is no argument whatsoever for shorting, because markets can remain bullish far longer than you believe.

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