EUR/USD Weekly Price Forecast – Euro Neutral for the Week

The Euro has gone back and forth during the course of the week to end up relatively flat due to all of the volatility out there when it comes to risk appetite. That being said, it has broken out above the psychologically important 1.20 level last week, and now it is likely that we are going to pull back a little bit in order to find a certain amount of value. This would be a simple matter of “market memory”, as the US dollar is a bit oversold in general. Nonetheless, I do not necessarily want to short this market, I would rather buy it on a dip.

EUR/USD Video 14.12.20

One of the biggest sticking points of course is the fact that the stimulus talks in America are going on forever, and it seems as if there is plenty of contentious behavior between McConnell and Pelosi, as well as many other members. The stimulus package has been getting smaller over time, so that may be part of the reason why we are seeing the Euro Dragon bit. However, I do think that eventually we get a certain amount of stimulus that sends this market to the upside and looking towards the 1.23 handle.

With this being the case, I am simply looking for an opportunity to find value in the market, which might be a little bit stretched at the moment. The 1.19 level underneath is the absolute “floor” in the market that I see right now, and I do think that we could go above the 1.23 level given enough time but that is my initial target to the upside.

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