EUR/USD Weekly Price Forecast – Euro Running Into Exhaustion

The Euro went back and forth during the course of the week, as it looks like we are getting a bit overextended. That being said, a pullback would make quite a bit of sense but quite frankly that should be a nice buying opportunity in the short term. The 1.20 level underneath should be massive support, extending down to the 1.19 level. In other words, even if we do break down from here, I do not really have any interest in shorting the Euro, as I believe that as long as we are “anti-US dollar” as far as the market sentiment is concerned.

EUR/USD Video 28.12.20

Dips at this point in time will be thought of as a buying opportunity just as the 1.23 level above should continue to be a major resistance barrier. The 1.23 level above probably has quite a bit of noise to the upside towards the 1.25 handle. All things being equal, I like the idea of buying dips, but I think we need to drop a couple of handles for longer-term traders to get involved. The next couple of weeks will be very thin volume, so you should keep in mind that you cannot read too much into the trades.

We are extended regardless of how you look at it, so you do have the possibility of a sudden and erratic moves in thin volume. Nonetheless, it does look as if the Euro wants to extend gains into next year so look at pullbacks as an opportunity to pick up value in what is obviously a very bullish trend.

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