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EURUSD Carves Fresh 2020 Highs, but Uncertainties Remain

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EURUSD looks ready for another leg higher.

The pair has been hovering just below key resistance near 1.2170 since December 3rd.

As Daily Price Action members know, a market churning below a key level for weeks is a bullish sign.

And it’s no surprise to frequent readers that I’m bullish on the EURUSD.

I’ve discussed multiple bullish scenarios for the euro since July.

The breakout in July triggered a 670 pip rally.

Then came the break above 1.20 on December 1st.

I was already long the EURUSD in anticipation of that breakout, as DPA members know.

One reason I’ve been so bullish on the euro has to do with the monthly chart.

EURUSD symmetrical triangle on the monthly time frame
EURUSD monthly time frame

As many of you know, the EURUSD broke out from a multi-year symmetrical triangle in July.

After a period of consolidation that ended with the December 1st close above 1.20, the pair was ready for its next leg higher.

Last weekend, I mentioned how EURUSD needs to climb above the 1.2150/70 area on a daily closing basis.

That would open the door to the 1.2330 area.

However, there are two uncertainties as of this writing.

One is technical and the other fundamental, but they go hand in hand.

First, we have a Fed rate decision and statement today at 2 pm EST.

The statement and following press conference at 2:30 pm EST are likely to impact the market, so that’s worth keeping an eye on.

Second, I need to see EURUSD close a day above 1.2170.

Remember that I use New York close charts provided by Blueberry Markets, which means each daily candle closes at 5 pm EST.

Until the euro clears 1.2170 on a daily closing basis, this breakout is speculative.

My target remains 1.2500, which I first announced on October 21st.

Disclosure: I hold a EURUSD long position.

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EURUSD trying to break out on the daily chart
EURUSD daily time frame

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6 comments
Justin Bennett says

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Henryk says

EURUSD test poziomu 1.21700

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MARTIN MAINA says

i hace exited EURUSD although that inside bar breakout, signify ush uer the fundamenta asect give me doubts

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JiAN says

hi, thanks for nice setup, i watch the EURUSD at the higher high series but also the pair seems to be on fail of higher high because of price looking need to make a pin bar pattern on daily time frame. so i will wait till 1.21473 to make a short order

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ivan says

Following Justin from some couple of months in EURUSD and as expect the pair is heading where we have our next goal 1.25 besides that AUDUSD going seems strong to 0.77 still really bullish side.

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ali says

thanks sir.

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