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EURUSD on the Verge of a 550 Pip Rally

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The EURUSD is getting close to breaking out of a four-month range.

I’ve discussed how the pair needs to clear the range between 1.1615 support and 1.1970 resistance to regain its momentum.

If you’ve seen my recent posts, including last weekend’s forecast, you know I’ve favored a break higher.

The reason for that is two-fold.

First, the EURUSD has been trending higher since March, and that uptrend is intact despite the recent consolidation.

Second, the euro is holding above a critical long term level near 1.1450.

EURUSD monthly chart showing key support region
EURUSD monthly time frame

That 1.1450 area has been the hinge for months now.

As long as the EURUSD is above it, I like the pair higher.

So, where might the euro go from here?

If buyers can clear the 1.1970 area on a daily closing basis, it would open the door to higher levels, including 1.2150 and 1.2330.

Keep in mind that the 1.1970 area extends as high as 1.2010.

As I’ve mentioned for the last couple of months, my longer-term target for EURUSD remains 1.2500 as we head into 2021.

A daily and weekly close above the 1.1970 to 1.2010 area would help solidify that view.

Disclosure: I hold a EURUSD long position.

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EURUSD range with potential breakout
EURUSD daily time frame

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8 comments
Justin Bennett says

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Samantha kumar halder says

Excellent explain

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    Justin Bennett says

    Cheers. Glad you found it helpful!

    Reply
Livingstone says

Very interesting fact to watch out for

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Femsy says

I love your weekly post, God will continue to increase your wisdom and knowledge. I like to become one of your lifetime member, but I don’t have capital to join because I am new and just started to trade life.

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Frano Grgić says

I have to agree on these targets.

I have conducted pip range analysis on EURUSD for 20 years period.

What I have seen is that December pip range is around 500 pips.

On the daily chart in 2017 in December is visible similar market overview. Same price levels.

And the price managed to reach 1.25000 in one month period time frame.

Everything is pointing to the same scenario. Lets see 🙂

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Ejike says

Excellent, I do watch out for your Wkly post before making final decision on most currency pairs. Thanks Justin

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Steven H says

Once again, I am compelled just to say “thank you”.

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