EUR/USD Price Forecast November 17, Technical Analysis

The EUR/USD pair has been choppy over the last several sessions, but it looks as if we are trying to roll over and continue the bearish pressure that had been so obvious late during the trading session on Wednesday. The shooting star the formed on the daily chart of course is a sign that we could fall, and I think that we will go looking towards the 1.17 level on a continuation of this. However, it’s likely that the market should find plenty of buying pressure in that area as it has been a neckline for the head and shoulders pattern on the daily chart, and market memory dictates that there will be some interest in the market in that general vicinity again. I think this pullback is simply a momentum building exercise after we have broken out to the upside, negating the head and shoulders pattern.
If we do break down below the 1.17 level, the market is likely to go much lower, perhaps reaching towards the 1.6 handle. Alternately, if we do bounce from there, then I think we make a return to the 1.20 level above, perhaps even the 1.21 level after that. The markets will continue to be very noisy, with the ECB looking to extend quantitative easing, but at a slower pace while the Federal Reserve is likely to raise interest rates, but we don’t know that for a fact. It appears that there is a lot of questions about whether they can raise interest rates more than once. We should continue to see noise, but eventually there should be some clarity, and that clarity should give us an opportunity to make a larger position, but in the meantime, we have to assume that the volatile attitude should continue.