The Euro went back and forth during the bulk of the session on Friday as we continue to weigh the possibility of a “no deal Brexit.” While most people will punish the British pound for this in the FX markets, it certainly has an effect on the European Union as well. In other words, with this type of chaos a lot of people are parking their money in US Treasuries heading into the weekend. This is one of those situations where there is no need to take on a lot of risk heading into a weekend that will almost certainly provide interesting headlines.
EUR/USD Video 14.12.20
We have been very bullish as of late and have been building up a bit of a flag. If we break the top of the flag it measures for a move to the 1.23 level, an area that looks like resistance anyway. That being the case, it all ties in quite nicely but whether or not we can break out heading into the weekend is a completely different question. I think at this point in time we are likely to see a lot of noise, which of course causes uncertainty. Any time there is uncertainty the US dollar tends to outperform. Do not get me wrong, I am not necessarily saying that you should be a seller of this pair, just that you probably will get an opportunity to buy it at lower pricing. The 1.20 level continues to be massive support underneath, and I would pay close attention to any move towards that direction for potential value.
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