EUR/USD Price Forecast December 29, 2017, Technical Analysis

If we break above the 1.1950 level, it’s likely that we will go looking towards the 1.20 level, and then eventually the 1.21 handle. I recognize that we could be breaking out of a bullish flag, on the weekly timeframe. If that’s the case, this market could go as high as 1.32 and I think that the markets are starting to punish the US dollar handily enough that we could see this move attempted to sometime next year. Ultimately, I think that the pullbacks at this point should be thought of as buying opportunities, as the 1.19 level should be a bit of massive support. If we break down below there, then I think we could go to the 1.18 handle after that.

Breaking above the 1.21 handle would be very difficult, but once we get above there, I think that we will see the market accelerate to the upside but don’t forget: this is the most heavily traded financial instrument in the world, meaning that we are going to see pullbacks occasionally, and of course sudden movements. However, I think that over the longer term, it looks like the pair is ready to go much higher, and I think that the momentum is starting to pick up. The first couple of weeks in January will be vital, and therefore could dictate where we go next. I believe that we are starting to see a bit of a sneak peek as to where we could end up, so I have become very optimistic.

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