EUR/USD Price Forecast – Euro Testing the Highs Again

The Euro has been very choppy to say the least, but it does look as if we are gradually pushing higher and ready to break above the 1.20 level sometime in the near future. It appears currently as if the market is “leaning” to the upside, and therefore experience has taught me that the probability of a breakout is increasing the longer this goes on. This does not necessarily mean that you jump in and start buying right away, but it does suggest that pullbacks will continue to be potential buying opportunities in a market that looks very healthy.

EUR/USD Video 01.09.20

You can break above the 1.20 level, then we are going to go targeting the 1.25 level above, but it is obviously going to take a certain amount of work to make that happen. To the downside I believe that the 1.18 level is becoming more and more important over time, as a potential support level. Obviously, we also have significant support near the 1.17 level under that.

At this point, I do not have any interest in shorting this pair, not necessarily because I like the Euro itself, just that there is significant US dollar weakness across-the-board right now, and this is the first place most people will express that opinion. In other words, it is a simple matter of following the flow of money and not necessarily becoming pro-European Union. Buying on dips should continue to work, as this is a market that clearly is trying to make a larger break out for a longer-term move.

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