EUR/USD Price Forecast – Euro Pulls Back From Highs Again

The Euro initially tried to rally during the trading session on Thursday, but it seems as if above the 1.23 level we have quite a bit of noise and resistance. With that being the case, it makes sense that we have pulled back from there but given enough time it is very likely that we continue to go to the upside. The 50 day EMA has crossed above the 1.20 level, so that support level should be backed up by even more strength at this point. The grind higher over the last couple of weeks has been very steady, so while I do think that we could get a bit of a pullback, clearly the base of that grind, closer to the 1.21 level, should be rather supportive.

EUR/USD Video 08.01.2021

Keep in mind that the area between the 1.23 level and the 1.25 level is a massive resistance barrier, and therefore it is likely going to continue to be difficult to break out of. While I do think it happens eventually, the reality is that there is a lot of work to make that happen. The occasional pullback should continue to be something to be expected, so therefore people should start to take a look at the idea of short-term pullbacks as being opportunities. If you are more of a longer-term trader, then a simple “buy-and-hold” strategy is fine, but you will have to be very cognizant of the fact that you will get the occasional pullback that could be a bit painful to watch. As far as selling is concerned, I have no interest in doing so as long as we are above 1.19, which I see as the bottom of that support zone underneath.

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