EUR/USD Forecast Today 26/01: Euro Traders Continue

(MENAFN- Daily Forex)

• The Euro was grinding just a touch higher despite the fact that it initially fell as the day started. Ultimately, we find ourselves watching the same important level heading into the weekend.

EUR/USD

The Euro was grinding just a touch higher after initially falling on Friday due to the overall US dollar weakness rather than any intrinsic Euro strength. The primary driver at the moment is heightened political risk in the US, specifically the volatility surrounding the recent tariff threats around Greenland.

But this is just a momentary blip on the radar, and the question now is where these currencies deserve to be. On one hand, we have seen the dollar get punished, and money flew into places like gold and, by default, the Euro. That being said, there is immediate resistance just above the 1.18 level and then again at the 1.1850 level, and I think it's going to be very difficult to break above there as it has shown multiple times in the past of Momentum

Because of this, I anticipate that this sets up for a shorting opportunity early in the week next week, as Friday has shown a real lack of momentum or, quite frankly, interest at this point in time. With that being the case, I think the overall range remains from 1.14 on the bottom to 1.1850 on the top.

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The 50-day EMA has provided short-term support between those two levels over the last couple of days and currently sits at the 1.1675 level. Ultimately, I think this is a market that doesn't really have anywhere to be anytime soon, although it's clear that the bullish behavior is fairly resilient. But the question now is, as we rise towards the major resistance barrier, is there anything to make it break out? As things stand right now, it.

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