EUR/USD Weekly Price Forecast – Euro Pulls BackThe Euro shot higher during the week but pulled back to form a bit of an exhaustion candle. However, I think we are still very much in a bullish attitude.
The Euro shot higher during the course of the week to reach towards the 1.23 level before pulling back. Ultimately, this is a market that I believe will continue to grind higher, and when you look at the weekly chart it does not take too much in the way of imagination to see a bullish flag. The bullish flag suggests that we will eventually break above the 1.25 handle, an area that is a major round figure that will attract a lot of attention. Quite frankly, the world is trying to crush the US dollar and with the massive amount of stimulus people will more than likely succeed eventually.
EUR/USD Video 01.03.21
Furthermore, if there is global growth then the Euro will be favored over the US dollar as well. The one major sticking point as of late has been the bond yields in the United States rising suddenly, and perhaps even more importantly rising very quickly. Nonetheless, once that gets stabilized it is likely that we will turn around and continue to go to the upside. I believe that the one point to zero level underneath is massive support, and buyers will probably come back into the marketplace any time we get near that region. On the other hand, if we were to turn around a break down below the 1.19 level, that could change the entire picture. Until that happens, I do believe that this is a “buy on the dips” type of situation going forward, although I do anticipate that there will be more noise than anything else in the short term.
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