EUR/USD Forecast January 23, 2017, Technical Analysis

The EUR/USD pair initially fell on Friday, but found enough support near the 50-day exponential moving average to turn around and formed a hammer. There is a massive amount of resistance at the 1.0750 level, so I think that it’s a bit too much for the market to overcome and the short-term, so I’m waiting to see whether we get an exhaustive candle. If we get a daily close above the 1.0750 level, the market will then reach towards the 1.10 level above. Regardless, expect quite a bit of volatility, but ultimately, I do think that the US dollar strengthens.