Euro and Pound bull breakouts (EURUSD and GBPUSD forecasts)

Intermediate
  • The US Dollar stays weak in the ongoing “risk on” environment.
  • “Risk on” is being driven by
    • Vaccine hopes
    • Biden bounce
    • Improving global data
  • The Euro has pushed to a new multi-month peak versus the US Dollar (EURUSD forecast)
  • The Pound is looking at progress at the EU-UK trade talks for further upside gains against the USD (GBPUSD forecast)

EURUSD day trade outlook: Surge above key 1.2011 peak

A surging advance again Tuesday above the cycle high at 1.2011 and also 1.2043 and 1.2081 resistances, to build on Monday’s bounce from 1.1922, plus the latter November rally from our 1.1799/97/93 supports, and upside pressures from the whole November rally from 1.1601, to keep risks higher for Wednesday. 

Day trade setup

  • We see an upside bias for the new cycle high at 1.2083; a break here aims for a key target at 1.2140, maybe towards 1.2198.
  • But below 1.2034 targets 1.2006/00 and maybe aims for 1.1958, which we would look to try to hold.

EURUSD intermediate-term outlook

The early November push above key 1.1881 resistance signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 1.2140 and 1.2556.
  • What changes this? Below 1.1744 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
8 Hour EURUSD Chart
8 Hour EURUSD Chart

GBPUSD day trade outlook: Bull breakout

A solid consolidation again for much of Tuesday and then an upside breakout above 1.3398/1.3403 resistances to stall just below the next barrier at 1.3444, at 1.3441, having held above 1.3263/49 supports to retain positive forces from the latter November rally above 1.3312/13 and 1.3359 resistances, plus from the earlier November rally above the key peaks at 1.3177, to keep risks higher for Wednesday. 

Day trade setup

  • We see an upside bias for 1.3441/44; a break here aims towards the key cycle high at 1.3483, even 1.3500/15.
  • But below 1.3315 aims for 1.3263/49, possibly even opens risk down towards 1.3195/93.

GBPUSD intermediate-term outlook

The early November push above 1.3177 signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 1.3483/1.3515 and maybe 1.3711.
  • What changes this? Below 1.3106/1.3092 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
8 Hour GBPUSD Chart

Editor in chief

Steve Miley is the Market Chartist and has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

US Dollar recovery theme continues, US earnings mostly inspire

Macroeconomic/ geopolitical developments President Joe Biden’s inauguration passed without any notable incident, which was likely a relief for financial markets.Four central banks were in play last week, with modest signals from the Bank of Canada and the European Central Bank of less dovish, de facto minimally more hawkish tones.Earnings season played a significant role, with most banks and financials beating expectations, whilst Netflix was extremely… Continued

US Dollar sending mixed signals

Negative on Dollar Index (DXY) and positives on Euro (EURUSD)Euro future holds weekly support (EURUSD)Fresh buy signal on Dollar-CAD (USDCAD) connects with weakness in oil Continued

Q1/Q2 Elliott Wave views for the Forex Majors – Exclusive interview with Jim Martens!

Here is an in-depth interview with Jim Martens, Elliott Wave International's (EWI) Senior Currency Strategist and editor of the trader-focused Currency Pro Service. In this interview, we will discuss the Major currency pairs, including EURUSD, the US Dollar Index (DXY), GBPUSD, USDCHF, USDJPY, AUDUSD and USDCAD. Here is a link to a free report on trading FX with EWI. It’s normally $79 and not available on… Continued

Dollar switches trend to up

US Dollar Index aims higher (DXY forecast)Euro breaks down - EURUSD forecastMajor negatives appear on Pound (GBPUSD forecast) and Aussie (AUDUSD forecast) Continued

Bullish into 2021 with blue sweep confirmed

Macroeconomic/ geopolitical developments The Democrats won both seats in the Georgia Senate runoff elections from Wednesday, confirming a “blue sweep”, the Democrats now taking control of both houses of Congress alongside the presidency. Then, Thursday saw unprecedented and shocking events in Washington DC, with Trump supporters storming the Capitol building. The fact that President Trump appeared to incite this activity has seen his social media… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.