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EUR/USD Price Forecast – Euro Noisy Ahead of Brexit Decision

By:
Christopher Lewis
Published: Dec 9, 2020, 14:48 UTC

The Euro seems to be struggling to break higher because we are still up in the air with Brexit and the budgetary concerns of the European Union.

EUR/USD Price Forecast – Euro Noisy Ahead of Brexit Decision

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The Euro initially tried to rally during the trading session on Wednesday as the 1.2150 level has been a bit of a magnet for resistance. Ultimately though, we are waiting to see the outcome of the dinner meeting between Boris Johnson and Ursula von der Leyen, and whether or not any serious progress is made. At this point, there seems to be a little bit of optimism but at the end of the day it really does not matter because the de facto position will be whether or not they are willing to talk going forward. My suspicion is that they will be regardless, so therefore you need to keep in mind that just because there is no Brexit deal today, that does not mean that there will be at Brexit deal early next year.

EUR/USD Video 10.12.20

Obviously, if there is no deal that could be a bit of a shock but at the end of the day it really does not matter because it will only invite more buying at lower pricing. Furthermore, the United States is more than likely going to do some type of stimulus, and that could weigh upon the US dollar going forward. The US dollar is oversold in the short term though, so that probably gives us an excuse to pull back. I would anticipate that there should be rather significant support near the 1.20 level underneath, so I do not worry too much about pullbacks and look at them as potential value plays.

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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