EUR/USD Weekly Price Forecast – Euro Recovers for the WeekThe Euro has rallied significantly during the week, showing signs of life yet again. We have recaptured the 1.21 handle, after a horrible previous one.
The Euro has rallied significantly during the course of the week, reaching above the 1.21 handle. By doing so, this does suggest that perhaps the Euro is going to make another run towards the top of the overall range that we are in, but right now I think that we are looking at a scenario where we are trading between 1.20 on the bottom, and 1.23 on the top. In other words, we are essentially at “fair value” when you look at the markets, as we are roughly in the middle of all of this. That being said, I think you are probably better off looking at this from a range bound trading opportunity, perhaps even on lower timeframe such as the daily timeframe, perhaps even the four hour timeframe.
EUR/USD Video 25.01.20
The area above 1.23 has a significant amount of resistance that extends to the 1.25 handle, and I do think that it would take a lie of momentum to make that move above 1.25. If we do, that opens up the door to much higher pricing. Currently, the European Union is struggling with lockdowns and of course a delay in the coronavirus vaccine being distributed, so this is part of the problem we are seen. Furthermore, when you look at the overall attitude of the markets, one of the things that you need to pay attention to is that stimulus has been a major driver of the US dollar falling. At this point, stimulus is still an open question as to when and how much it will deliver. With that, I believe more choppiness is ahead for this pair.
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