Yearly Forex Outlook For EURUSD, GBPUSD, USDJPY
Currency Trends in a World After COVID-19
Hey! Our yearly Forex outlook is now out! It covers the analysis of USD, EUR, GBP, and JPY. Find it here:
EURUSD 2021 Technical Analysis:
EURUSD finally broke the major resistance trendline in summer 2020, marking the end of a 12-year downward channel. The next key technical resistance higher is the 1.25 zone. It is a confluence technical zone between the three major lows of 2008, 2010, and 2012, and the 2018 high. The question is, will 2021 prove to be a year when EURUSD records just another high in this zone, or does it finally break through?
The bullish momentum is now strong, but so is the resistance in the 1.25 area. While a breakout is possible, it’s unlikely that it will come as a smooth ride without setbacks. Some reaction at this resistance is highly probable. Note that the resistance can stretch as high as 1.27 before any meaningful downside reaction occurs.
Looking at the other direction, the obvious first key support zone lower is the 1.20 area. But the broken 12-year resistance trendline won’t be tested until the 1.15 level. This means if EURUSD goes for a retest of the broken resistance – now turned into support – then the price may trade down to 1.15. What happens there will be crucially important for the newly established bull trend. The 1.15 support will need to hold for this trend to remain
intact.
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