EUR/USD Forecast October 25, 2017, Technical Analysis

The EUR/USD pair rallied a bit during the day on Tuesday, reaching towards the 1.1775 level. The market pulled back a little bit from there, but as the Americans came on board, we continue to see bullish pressure jumping into the market. If we can break above the 1.18 level above, the market should then go much higher, perhaps reaching towards the 1.19 level, followed by the 1.20 level after that. I suspect that this market is going to continue to be choppy, because that’s the general attitude of the EUR/USD pair anyway, as there is a lot of high-frequency trading. The market seems to be trying to find some type of floor at the 1.17 level, and of course that is very important as the 1.17 level looks to be the neckline of a larger head and shoulders, and that of course would be very negative.
With this in mind, I believe that you need to be very careful with your trade positions, especially when it comes to the size of them. I think that the market is ready to make an explosive move, and the 1.17 level underneath could either be a massive springboard for buying pressure, or perhaps if we break down below there, the market could go much lower in rapid succession. I think that the market continues to offer a lot of opportunity in both direction for short-term scalpers, but given enough time I suspect that we need some type of catalyst to make the real move. It comes down to Mario Draghi, he could say something to dry the value of the Euro lower, as there has been significant bullish pressure for some time, and although the European Union is starting to strengthen, one has to wonder how much longer the bank can allow this to go on? No matter what, I’m willing to take either trade, and a “higher high” is reason enough to start aiming for higher levels just as a breakdown below the neckline would be a reason to start selling. Expect a lot of noise.