Two days ago, we reviewed a potential EURUSD breakout.
The euro had been pressuring the 1.2150/70 resistance area since December 3rd and looked ready to break free at any time.
In fact, the EURUSD was trading above 1.2170 when I wrote Wednesday’s article.
But if you read that post, you know we were waiting for the 5 pm EST close to confirm the breakout.
Remember that I use New York close charts provided by Blueberry Markets so that each daily candle opens and closes at 5 pm EST.
As soon as EURUSD closed above 1.2170 on Wednesday, bulls were off to the races.
So what’s next for the euro?
If we get a pullback, I would like to see the area between 1.2150 and 1.2170 hold as new support.
Given the bullish momentum of late, I’m not sure we get a meaningful pullback until the EURUSD reaches the 1.2330 resistance area.
That’s a key level I’ve discussed for weeks.
I’m still long the EURUSD from November 27th, an entry I announced on the Daily Price Action membership site.
I’ve since added to that position twice since the euro broke above 1.2070 on December 2nd.
My target for EURUSD remains 1.2500, as I’ve discussed since October 21st.
As for where the pair goes next week, keep an eye on today’s session.
If it forms an inside candle, it could offer an opportunity to get long the EURUSD next week.
But only if euro bulls can take out Thursday’s high at 1.2272.
Last but not least, although my target is 1.2500, I think the euro can move even higher against the USD in 2021.
Disclosure: I hold a EURUSD long position, which I’ll add to again at some point during this pullback.