EUR/USD Weekly Price Forecast – Euro Breaks Out Above Crucial Level

The Euro broke higher during the course of the week, slicing through the 1.20 level. That is an area that has been massive resistance previously, so it does make sense that we would continue to go higher now that we have done this. The fact that we are closing towards the top of the weekly candlestick is a bullish sign as well, but it should be noted that on the daily chart we have seen a little bit of exhaustion for both the Thursday and Friday candlesticks, perhaps in a bid for people to take profit heading into the weekend. Furthermore, we are a little bit extended, so I like the idea of buying pullbacks at this point.

EUR/USD Video 07.12.20

The 1.20 level of course will be significant support, due to the fact that it was such previous resistance. “Market memory” of course comes back into play and extends down to the 1.19 level after that. I do like the idea of finding value on a dip, because it is so obvious that the market has sliced through such a major level that has been containing the market for so long. Ultimately, I do think that we go looking towards the 1.23 level, perhaps even the 1.25 level after that. I do believe that the rest of the world is simply waiting to get involved, so those who were not fortunate enough to be long of the market, they will be looking for opportunities on dips.

As far as selling is concerned, the only thing that I can think of that could cause that to be a trading opportunity is if the Brexit deal with not finalized or reached.

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