EUR/USD Price Forecast December 18, 2017, Technical Analysis

The EUR/USD pair initially tried to rally during the trading session on Friday, but then rolled over again to form a less than impressive candle. Because of this, I think we will probably continue to go lower, but I also believe that there is a significant amount of support underneath, especially near the 1.17 handle. Alternately, if we break out to the upside, especially the 1.1850 level, the market should then go to the 1.20 level after that, possibly the 1.21 handle. If we can break above there, the market then is free to go in more of a “buy-and-hold” type of attitude. I believe that eventually is what happens, but as we approach the end of the year, we could have a bit of a lull in trading action. The volatility could either spike rather rapidly due to thin trading conditions, or sometimes we will simply sit still. It’s a little too early to make that decision, but certainly the sum year can be very interesting.

I believe that longer-term it is a market you should be buying, so I will more than likely ignore most sell signals, and sadly wait for buying opportunities based upon support and of course bounces. A break out to the upside also has me throwing money at the market, but in the meantime, I think that the market is likely to react to tax bills coming out of the United States, and of course the ECB economic forecast that was released early this week. I think a lot of noise is coming, but at the longer-term charts, we have a nice bullish flag forming.

Economic Calendar