EUR/USD Price Forecast November 10, 2017, Technical Analysis

The EUR/USD pair has been volatile during the trading session on Thursday, as the 1.16 level continues to attract a lot of attention. However, we have broken down below the neck line on a daily head and shoulders, so the longer-term signal is most certainly to the downside. Because of this, I look at short-term rallies as a nice opportunity to start selling again. The 1.17 level above is the neck line that I am referring to, and I believe it will offer significant resistance. If we are to test that area, at the first signs of resistance I am more than willing to start selling again. Also, if we were to break down below the bottom of the recent trading action, I would be a seller as well. Quite frankly, I believe that the ECB signal that it is nowhere near raising interest rates at the last meeting, and therefore it’s likely that we are going to continue to see US dollar strength, at least in the medium-term.
The Federal Reserve is all but assured to raise interest rates a couple of times over the next several months, so it’s likely that we will go lower to fulfill the measured move from the head and shoulders, which signifies roughly 1.13 being targeted. However, this market of course is very choppy at times, so it may take a while to get down there. This is a market that continues to move based upon risk on/risk off, and I think that there is plenty of news out there that could cause worry, and drive money into the US dollar. If we were to break above the 1.1725 level, at that point I would start to rethink the situation. All things being equal though, I am bearish.