EUR/USD Price Forecast – Euro Pulling Back From Top of Range

The Euro has shown itself to be rather resistant to breaking above the 1.19 level, and the action over the last couple of days has done nothing to dissuade traders are thinking that might be the case going forward. We had formed “tweezer top” candlesticks earlier in the week, which of course is a sell signal that a lot of people will be paying attention to. Ultimately, the 50 day EMA underneath would be a target, and then possibly even the bottom of the range down to the 1.16 level. The market is essentially stuck in this range, as both central banks look to be very loose.

EUR/USD Video 20.11.20

The ECB could be rather crucial, as people are waiting to see whether or not the central bank is going to become extraordinarily loose going forward or not. With the increasing coronavirus figures in the European Union, it seems all but a certainty. At this point, it is likely that the market will continue to favor selling on short-term rallies, but at this point in time expect a lot of choppy and short-term behavior. As far as a longer-term trade is concerned, we have a long way to go as far as clarity is concerned so I would focus more or less on short-term charts than anything else.

I prefer fading the Euro, the least for the time being. All things being equal, I think that the range that we are in right now is probably the range we stay in for the rest of the year. Having said that, if we were to break the 1.20 level then I think we go much higher.

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