EUR/USD Forecast May 4, 2017, Technical Analysis

The EUR/USD pair drifted lower during the Wednesday session, testing the 1.09 handle. I believe in this area we will probably see some buying pressure, and of course support. If we can break above the 1.0915 level, I think the market then goes looking for the 1.0935 level. A breakdown below the 1.09 level isn’t necessarily overly negative, it just signals that we will probably reach towards the 1.0880 level. The EUR/USD pair will continue to be choppy but we’ve seen a certain amount of bullish pressure over the last several days to drive us a little bit higher. I think that’s going to be the main theme over the next couple of days, a grind higher.
Singles, not home runs.
I think that this market to use a baseball analogy is going to be “singles, not home runs.” In other words, the markets will grind to the upside, and you will continue to pick up profitable trades on short-term charts, and the longer-term traders will have to be very patient. I think buying on the dips might be the best way, but the market is somewhat congested so patients will be needed even on the shorter time frames. I don’t have any interest in shorting, at least not currently, and not until we break down below the 1.0850 level, something that looks very unlikely. If it does happen, there’s a gap that could be filled from several days ago, but I think we will test the 1.10 level above first, as it is a large target that traders will be far too interested in to ignore. If we can break above there, things will certainly get interesting but I think the EUR/USD pair is going to be more of a grind over the next several months, especially as we go into the summer months. Longer-term, I think that the market looks for 1.12 above.