EUR/USD Forecast January 3, 2017, Technical Analysis

The EUR/USD pair went back and forth during the day on Friday, testing the 1.05 level for support. We have recently seen a spike in this market, but quite frankly a lot of this would have been due to low liquidity and end of year position reporting by money managers, having the closeout positions to report those gains to their customers. Given enough time, I think that the selling pressure returns, especially if we get anywhere near the 1.07 level, as the overall market prospects for the Euro continue to look very negative overall.