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EUR/USD Price Forecast January 15, 2018, Technical Analysis

Christopher Lewis
Updated
The EUR/USD pair went sideways initially, but then broke to the upside during the trading session on Friday. More importantly, we have broken out above a major technical area. I believe this foretells good things for the Euro.

The EUR/USD pair has gone sideways initially during the trading session on Friday, and then broke out above the vital 1.21 handle. We have made a fresh new high, and that shows the market ready to go much higher. I think that the 1.24 level above will be a target, and obviously the 1.25 level as it is a large, round, psychologically significant number. Every time we pull back, I’ll be looking to buy, and I think that the 1.20 level underneath will be the hard floor that keeps the market higher. This is a market that continues to see a lot of volatility, but quite frankly with the US dollar getting pummeled so drastically over the last couple of sessions, it’s likely that we will continue to see the reason enough to go long. It’s not until we break down below the 1.20 level that I would be concerned.

The overall attitude to this market is one that attracts a lot of frequent traders, as well as high-frequency traders. The ECB looks likely to continue to ease up on the quantitative easing, showing the way forward. The US economy missing noneconomic numbers over the last couple of days is helping as well. I like the idea of taking advantage of value when it appears, but you should be careful about jumping in with both feet. I think that the markets will continue to be one that you can add on dips, building up a larger position for what almost undoubtedly will be a large move.

EURUSD analysis Video 15.01.18

This article was originally posted on FX Empire

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