EUR/USD Price Forecast December 20, 2017, Technical Analysis

The EUR/USD pair continues to be volatile, but bullish looking at the charts for the Tuesday session. I think we are going to continue to see a lot of choppiness going forward, as we are getting so close to the Christmas holiday. Nonetheless, when I look at the longer-term charts, I cannot help but see a bullish flag forming on the weekly chart that suggests that the 2018 year should be good for the Euro. I believe that the market continues to offer value every time it dips, and I also recognize that we should go looking towards the 1.19 level above. I think that selling this pair for any length of time is probably almost impossible, even though we are starting to see good signs for the US economy in the form of tax relief.

In a sense, this is a “risk on” move, as traders tend to feel much more comfortable about buying the Euro when stock markets rally, and of course economic animal spirits strengthen. If there’s some type of systematic shock, we can always get a sudden reversal, but you can’t worry about black swan events, as they will happen. I think that the market continues to be very bullish in general, so I like buying these dips as they represent an opportunity to build your position up, and take advantage of a strong trend. Once we break above the 1.21 handle, the market should continue to go much higher, as it would be a major hurdle overcome. I think that the 1.15 level underneath is the absolute “floor” in the pair.

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