EUR/USD Price Forecast – Euro Pressing Higher
The Euro has had a strong move higher during the trading session on Tuesday as it looks like we are trying to take on the 1.23 handle. This is an area that has been resistance previously, and therefore it is not a huge surprise that we cannot simply slice through. Ultimately, this is a market that has been bullish for some time and therefore there is no point in trying to fight it. With the ECB likely to loosen monetary policy I still think that we are probably more likely to see choppy behavior more than anything else, but obviously there is a bit of an uptrend attitude going in general.
EUR/USD Video 30.12.20
Looking at the chart, I think we will continue to have a “buy on the dips” attitude, with the 50 day EMA underneath at the 1.20 level offering a bit of a “floor” in this market. I would be surprised if we broke down through it, so if we did then we would probably have to reassess everything. At this point though, it is obvious that the market has more of a proclivity to go higher, and I think eventually we will probably try to chew through the 1.23 handle, but it may take multiple attempts. To the upside, the 1.25 level would be the target if we do that, but we have some work to do obviously.
Most of this is probably driven due to the stimulus situation in the United States, so that should be paid close attention to as it looks now likely that we are going to see even more coming down the road.
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