EUR/USD Price Forecast November 16, 2017, Technical Analysis

The EUR/USD pair rallied a bit during the day on Wednesday, reaching towards the 1.1850 level above. However, we rolled over from there and it looks as if were going to form some type a shooting star on the daily chart. If we break down below the lows of the day, I think that the market falls towards the 1.17 level underneath, which had previously been both support and resistance, and the neckline of a head and shoulders pattern that I’ve been paying attention to. The markets continue to be a mess, and if the US Congress continues to drag its feet on tax reform, I believe that this pair continues to go higher longer term. However, we have gotten a bit ahead of ourselves, so the pullback makes quite a bit of sense. Longer-term, the charts look as if they are going to go towards the highs again, somewhere near the 1.12 handle. A break above there is a “buy-and-hold” situation.
Keep in mind that the ECB is looking to extend quantitative easing though, so I think we will get the occasional noisy move in both directions. If Congress can get itself together, the market will more than likely break down significantly, and sliced through the 1.17 level again. I think they will eventually, but it will be a wild, and it could even be a bit of a disappointment, which would negate any type of positive action for the greenback. I think that the next 24 hours could be somewhat negative, but eventually it’s time to start buying again. A break above the 1.21 level that has me looking towards the 1.25 level after that, as it is a large, round, psychologically significant number and of course structurally important on the longer-term charts.