EUR/USD Forecast July 17, 2017, Technical Analysis

The EUR/USD pair ground a little bit higher during the session on Friday, but then eventually broke out with more momentum, slicing through the 1.1450 level. The market now looks as if it’s turning this attention to the 1.15 level above, which is the top of a three-year consolidation. Ultimately, this is a market that I believe will continue to press that area, but the 1.15 level above is massive in its implications. If we can break above there, the market should then continue to go much higher. I believe that the British pound breaking out to the upside against the US dollar could be a signal that we are going to see the same thing over here. Ultimately, this is a market that will be volatile, but I would be a bit hesitant to put money to work currently. In fact, there is a gap on the longer-term charts below that has yet to be filled, so that could be a harbinger of potential trouble.
Poor economic numbers
There were poor economic numbers coming out of the United States on Friday, and that was a big part of what happened in this pair. This is because people are starting to question whether the Federal Reserve can raise interest rates with any type of momentum at all, and that of course works against the value of the US dollar. Because of this, I think we are going to continue to see the market show volatility, and I think the next couple of sessions will be absolutely vital for this pair.