EUR/USD Price Forecast – The Euro Pulls Back From Major Level

The Euro initially tried to rally during the trading session on Thursday but found the 1.23 level to be a bit too resistive. If we can get above there, we have a significant amount of resistance extending all the way to the 1.25 handle. Pullbacks from this point should continue to send buyers back into pick this market up and try to break out to the upside. After all, the US dollar is on its back foot against most currencies, and the Euro by extension almost has to rally in that scenario. After all, the market is considered to be the “anti-US dollar” currency.

EUR/USD Video 04.01.2021

The 50 day EMA is sitting just above the 1.20 level and extending higher. All things being equal, it is likely that pullbacks will be buying opportunities all the way down to at least that area. Whether or not we can break above the 1.25 handle would take some catalyst going forward, probably the US Dollar Index breaking through the 88 handle. If we were to break down below through that level, that would more than likely send a massive amount of selling looking towards the greenback.

This is a market that has gotten a little bit extended at this point in time, but ultimately the trend seems to be said if we can break above the 1.25 handle. That is the top of this resistance area that shows up in the monthly chart, so I cannot stress how important the 1.25 level will be if we do get above there. At this point, I have no interest in selling.

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