EUR/USD Weekly Price Forecast – Euro Reaching Major Resistance ZoneThe Euro has rallied significantly during the week, slamming into the 1.23 handle but it is the beginning of a major resistance barrier on longer-term charts.
The Euro has rallied significantly during the trading week to slam into the 1.23 handle. All things being equal, this is a market that is a little bit overextended, so I think a pullback does make quite a bit of sense. Regardless, the area between the 1.23 level and the 1.25 level offers a massive resistance. If we can break above the 1.25 handle, it is a major breach of resistance in the longer-term chart. I think the first couple of weeks of 2021 should be rather crucial. The question is not whether or not we can be positive, it is whether or not we can break out. After all, if we do not break out then I think we pull back towards 1.20 level where we should see support extending down to the 1.19 level.
EUR/USD Video 04.01.20
At this point in time, we have a lot to think about, but it is worth noting that the US Dollar Index looks as if it is going to make a serious attempt at the 88 handle, and if we break down below there it is likely that we would see a significant break down in the greenback value across-the-board, and that in and of itself should send the Euro higher as it is considered to be the “anti-dollar.” Expect a lot of choppy volatility, but at the end of the day it is very unlikely that the next move to the upside is easy, despite the fact that I do think we could very well see that happen eventually. “Noise” would probably be the word I would use for the next few weeks.
75% of retail CFD investors lose money
For a look at all of today’s economic events, check out our economic calendar.