The Euro has rallied significantly during the trading week to slam into the 1.23 handle. All things being equal, this is a market that is a little bit overextended, so I think a pullback does make quite a bit of sense. Regardless, the area between the 1.23 level and the 1.25 level offers a massive resistance. If we can break above the 1.25 handle, it is a major breach of resistance in the longer-term chart. I think the first couple of weeks of 2021 should be rather crucial. The question is not whether or not we can be positive, it is whether or not we can break out. After all, if we do not break out then I think we pull back towards 1.20 level where we should see support extending down to the 1.19 level.
