EUR/USD Price Forecast – Euro Losing Momentum?

The Euro has tried to rally during the trading session on Wednesday but continues to face the same problems above the 1.19 level. With this in mind, it is worth noting that the market is more often than not going to continue to see resistance above. There are a lot of traders out there that are a bit nervous of the Euro going above towards the 1.20 level, which is where the ECB started jawboning it lower previously. This suggests that perhaps there is a bit of a “psychological barrier” in the form of the 1.20 level. Clearly, we have seen a lot of resistance in that general vicinity.

EUR/USD Video 26.11.20

One thing that is starting to go unnoticed is the fact that the coronavirus cases in the United States continue to pick up while they are declining in Europe. With everything going on Brexit related, one has to wonder how long it will be before that comes back into the picture? Because of this, people could start to think about the ramifications when it comes to global growth between the two economies. Nonetheless, there are vaccines coming so that more than likely will be the dominant theme given enough time. This should help the Euro, but in the meantime, we need to get past Brexit negotiations to clear up some overall concern.

I would anticipate a lot of noisy trading between now and the end of the year but longer-term it does look as if the market wants to get above the 1.20 handle. With that, short-term pullbacks probably continue to be buying opportunities over the next several weeks.

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