EUR/USD Price Forecast – Euro Slams Into Uptrend Line

The European Union is struggling with a plethora of bad news right now, but it seems like nobody is paying attention. This is the biggest trouble with macroeconomics, they only matter what people care. Right now, the world obviously only cares about stimulus and they are trying to force the Federal Reserve into doing just that. However, it is somewhat out of the Federal Reserve’s hands, and now it comes down to Congress. What you are looking at is a chart where a lot of people are “betting” that the congressional members will do what it takes to pass some type of stimulus between now and the election. This sets up for a very dangerous trade.

EUR/USD Video 12.10.20

At this point, even though it is difficult to short this pair, you certainly cannot be a buyer of it. There is obvious resistance in the form of the uptrend line and of course the 1.1850 level. The end result, much like the British pound, is that the market is essentially toxic. All it will take is one Tweet or rumor to send this pair in one direction or the other. It is obvious that there is no real conviction, because even though we have had some relatively strong moves in short bursts, after that the market will just sit still. I think this is probably the market we are stuck with until we get some type of clarity. I for one would not hold my breath but I suspect there is probably more money to be made on bad news then there is good as there is so much in the way of noise above.

For a look at all of today’s economic events, check out our economic calendar.