EUR/USD Forecast July 20, 2017, Technical Analysis

The EUR/USD pair fell during the day on Wednesday, drifting towards an uptrend line on the hourly chart that is just above the 1.15 handle. Breaking above the 1.15 handle was very important, so I think that we can find buyers in this area. If we do find buyers in this area, I think that the market should continue to grind higher, perhaps reaching towards the 1.18 level over the longer term. Breaking above the 1.15 level was significant, and therefore I think that the buyers will be looking to take advantage of this dip in pricing. Alternately though, if we do breakout from here that would be an extraordinarily negative sign, perhaps sending the market back into the consolidation that we have been in for almost 3 years.
The importance of 1.15
I believe in the importance of the 1.15 handle, so therefore the market should present itself as to what it is getting ready to do in this general vicinity. Currently, I believe that the market is going to continue to find buyers, but I need to see some type of supportive reaction to start putting money to work. A breakdown below the 1.1450 level should send this market lower, and at that point I would be willing to sell. I don’t have any interest in doing so yet, and I still have faith in the buyers but obviously we need to see some type of confirmation before putting money to work.