EUR/USD Forecast October 2, 2017, Technical Analysis

The EUR/USD pair had a positive session on Friday, reaching towards the 1.1835 level, before pulling back slightly. However, as the American traders came back on board, they started to buy the pair again, and I believe at this point we should continue to see buying pressure come back in. I believe the dips offer buying opportunities, that the short-term 1.18 level should be supportive, and given enough time we will go reaching towards the 1.20 level. I think that a break above there should send this market to about 1.12, and clearing that is the signal that were going to go higher longer-term. The pair continues to enjoy a relatively hawkish ECB, with a bit of confusion coming out of the Federal Reserve. This can help the overall attitude of the market, and I believe that there’s a bit of a short-term floor near the 1.1775 handle. Because of this, it’s only a matter time before the buyers get involved on these dips.
It appears that the US dollar is selling off, and of course it’s shown the most in this pair as it is the largest financial instrument in the world. I believe that short-term traders are jumping into this market, so not looking for any type of massive move, just a bit of the “buy the dips” mentality that is so common in this pair. Ultimately, this is a market that I think is one that is very difficult to sell, and quite frankly I look at the salon says value. The “floor” in the market is of the 1.15 level, and it’s not until we break down below there that I would be concerned about the recent uptrend that we have seen form. Overall, choppiness with a bullish attitude should be expected.