EUR/USD Weekly Price Forecast – Euro Continues to See an Upside Move

The Euro rallied significantly during the course of the week as stimulus coming out the United States has underpinned the US dollar falling. Ultimately though, the 1.2250 level has offered a bit of resistance and it looks as if it is going to be difficult to break above there. Given enough time, the 1.23 level also comes into play and that should be paid attention to as well. Longer-term, I think that this market probably continues to go much higher, but I also recognize that we are likely to see a lot of noise coming out of the mouths of politicians that will throw this market around. Ultimately, I do think that stimulus is one of the major reasons why we could see strength in the Euro, and therefore I believe it is only a matter of time before we reach towards the 1.23 level.

EUR/USD Video 21.12.20

To the downside I believe that the 1.20 level will continue to offer massive support, as it has multiple times. This is an area that was previous resistance, so it all comes together quite nicely as far as “market memory” is concerned. All this being said, I believe that the next week is going to be difficult so I would not even be trading but longer-term it looks as if pullbacks will be bought into, as the Euro continues to benefit from US dollar weakness more than anything else. I have no interest in shorting and therefore look at pullbacks as a way to take advantage of what is an obvious trend.

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