EURUSD broke out of its four-month range yesterday with conviction.
I’ve discussed the potential for a move higher from the euro several times on this website, including last Friday.
I also went long the EURUSD late last week, as I mentioned to Daily Price Action members.
So far, that trade is up about 170 pips.
In addition to the daily time frame, which we’ll get to momentarily, the monthly EURUSD chart looks increasingly bullish.
The July breakout is something I’ve discussed at length.
I’ve also said that as long as EURUSD is above the 1.1450 support area on a monthly closing basis, that I like the pair higher.
So, where to from here?
As long as EURUSD stays above the 1.2000 region on a daily closing basis, the door to 1.2150 and 1.2330 is wide open.
Of course, I’d also like to see the pair close the week above 1.2000.
Like I mentioned on October 21st, my target for EURUSD is 1.2500 as we head into 2021.
Here’s what I said then:
But either way, I like EURUSD higher toward 1.25 over the coming weeks and months.
The 1.2500 area is where the euro faltered in early 2018.
I believe EURUSD has the potential to move even higher, but the confluence at 1.2500 makes it a reasonable and reachable target in 2021, in my opinion.