EUR/USD Price Forecast November 8, 2017, Technical Analysis

The EUR/USD pair has drifted a bit lower during the day on Tuesday, as we continue the overall gentle downtrend. We have recently broken below the bottom of a head and shoulders pattern on the daily chart, and it looks as if we are more than willing to continue to drift down towards the overall measure target, the 1.13 level. I believe that the markets will continue to be negative in general, and I think that short-term rallies should continue to be selling opportunities. The 1.17 level above will continue to be a bit of a “ceiling” in the market, because it was the previous neckline. If we were to break above that line, that completely would negate my overall thesis for this pair, which is negative for the short term. However, for the buyers of the pair, there is a bit of light at the end of the tunnel.
At the 1.13 level below, which of course would fit the measured move from the head and shoulders pattern, we have the 50% Fibonacci retracement level from the impulsive move higher. I think we are going to see a drift down to that level, but eventually the buyers will come back to pick up value at that point. I suspect at this point technicals are starting to take over, and systematic traders continue to short this market. I believe that the next couple of weeks will be negative, but eventually we will find enough support underneath to get the buyers involved. If we were to break down below the 1.13 level though, that would be a very negative sign, opening the door to the 1.10 level underneath, and perhaps filling the gap near the 1.08 handle from the several weeks back.