EUR/USD Price Forecast – Euro Continues to Levitate

The Euro has rallied slightly during the trading session on Tuesday, as we continue to meander around the 1.2125 level. Ultimately, this is a market that looks to be somewhat well supported and has recently broken out. The 1.20 level underneath is crucial, and I think that support extends down to the 1.19 level as well. With that being said, I think it is only a matter of time before buyers come in on these dips. This is especially true considering that the US dollar itself is on the back foot, which of course helps the Euro by default.

EUR/USD Video 09.12.20

The 50 day EMA is starting to reach towards the bottom of that 100 PIP range of support, so I think that will add more influence in that region. Quite frankly, I would love to see the Euro drop a couple of handles so I can pick it up again. The target at this point in time seems to be the 1.23 level above, which is where we had seen significant selling previously. As long as we continue to see people selling off the US dollar based upon stimulus and central bank expectations, it is very likely that the Euro would continue to rise.

Pay attention to the ECB and statements about whether or not the Euro is getting “too expensive”, because if they do start talking about that it is likely that the trend could reverse for at least a significant move. In the meantime, the trade weighted Euro continues to be relatively stable, so that makes this pair a little less damaging to European exports.

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