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EUR/USD Price Forecast January 17, 2018, Technical Analysis

Christopher Lewis
Updated
The EUR/USD pair dropped a bit during the trading session on Tuesday, as the Americans came back from the Martin Luther King Jr. holiday. The 1.22 level is offering a short-term support, but if we break down below there, I think will go looking towards even more significant support. In other words, the buyers seem to be in control longer term.

The EUR/USD pair has drifted a bit lower during the trading session on Tuesday, reaching down towards the 1.22 handle. Ultimately, I think that the market should continue to go higher based upon the 1.21 level breaking, which was a massive resistance barrier. I now believe that the EUR/USD pair is going to go looking for the 1.24 level above, and then eventually 1.25. The US dollar is in a lot of trouble overall, and I think that the market will continue to go higher, as it’s likely that these dips will be buying opportunities given enough time. I think that the markets will continue to be very negative towards the greenback in general.

Is not until we break down below the 1.20 level that I would be concerned, and I think with the ECB looking likely a step away from quantitative easing, the markets trying to front run that potential move. Beyond that, I think that global growth will be negative for the US dollar, as people are starting to throw money into other markets around the world to pick up a bit of alpha. The market will course be rather noisy, but quite frankly that’s what you expect when you start to see a longer-term move to the upside. I believe this is the beginning of the longer-term trend, so therefore I am essentially “buy only” at this point.

EUR/USD Forecast Video 17.01.18

This article was originally posted on FX Empire

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