EUR/USD Price Forecast – Euro Trying to Break Crucial 1.22 Level

The Euro has rallied a bit during the trading session on Wednesday as we continue to see US dollar weakness in general. This is exacerbated by the stimulus talks in the United States supposedly getting better, and if that is going to be the case more dollars will enter the system, thereby driving up the price of the Euro naturally. On the other hand, we also have the Brexit talks which seem to be doing a little bit better these days, and therefore people will be paying close attention to those as well.

EUR/USD Video 17.12.20

Remember, it is not just the British pound that gets influenced by the Brexit situation, it is also the Euro. Granted, it is a little bit more of a muted response but at the end of the day it is still very much sensitive to what goes on in that scenario. Looking at the longer-term chart, the 1.23 level is a resistance barrier, and I think that is in fact where we are trying to get it. Furthermore, there is a bullish flag on this chart that suggests that we could get to that level as well. The 50 day EMA has just entered the massive support zone between the 1.19 and 1.20 levels, an area that was previously so hard to break through.

At this point, it looks as if it is going to offer a nice “floor” in the market. As far as selling is concerned, I am not interested in doing so unless something truly ugly happens, which at this point in time seems to be less of a threat.

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