EUR/USD Forecast May 25, 2017, Technical Analysis

The EUR/USD pair went sideways during the session on Wednesday, hovering just below the 1.12 level. This market looks a bit exhausted, and certainly we have a lot of interest in this general vicinity. Longer-term, when you look at the weekly charts there is a clear consolidation area that extends to the 1.15 level above, and therefore I think that the market will eventually try to get there. Alternately, I believe that the market could breakdown from here, but I believe there is enough support underneath to probably offer enough buying pressure on dips. There are a lot of moving parts, but I believe that the European Union is starting to look better to investors, and of course traders.
3 years of sideways
The last 3 years have been sideways. The 1.05 level underneath continues to be support, while the 1.15 level above offers resistance. In the meantime, we are roughly in the middle of the trading range, and in an uptrend. While it will be volatile, it makes sense that we continue to show signs of life in this pair, and go looking to test that barrier again. I do not expect a break above there anytime soon, so currently this is probably a nice market to trade for short-term trades only. If we do breakout from here, I believe that the 1.11 level will offer support, just as the 1.10 level under there will. Volatility continues to be an issue, but given enough time I think that the markets will test both of those levels over the next several months. With this in mind, the last move has been to the upside, and we are not at the resistant jet. Because of that, I remain a short-term bullish bias but recognize pullbacks will happen.