EUR/USD Price Forecast – Euro Pulls Back After Jobs Number

The Euro has rallied a bit during the trading session initially on Friday, but at the jobs number came out the profit-taking began. At this point, it looks as if the market is likely to show bits and signs of exhaustion going forward, so I think a pullback makes quite a bit of sense due to the fact that we had been straight up in the air. The 1.20 level underneath is a massive floor, and any pullback towards that area will more than likely attract a lot of attention. After all, it was the area that we took off from, and it is also the top of a 100 pips range that we had recently been struggling with.

EUR/USD Video 07.12.20

To the downside, I see the 50 day EMA reaching towards the 1.19 level as indicative of the fact that the area will offer support, and it certainly looks as if the Euro has decided that it needs to go much higher. At this point, I look at any pullback as a potential buying opportunity, due to the fact that the next major resistance barrier is closer to the 1.23 level, and therefore I believe that is the longer-term target. This is not to say that we will get there overnight, and that is part of what I think the pullback could achieve, just some sense of gravity. Ultimately though, I think that it is going to take a significant break of the 1.19 level for me to get bearish on the Euro going forward, something that I do not see happening anytime soon.

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