EUR/USD Price Forecast January 16, 2018, Technical Analysis

The EUR/USD pair broke above the 1.2275 level during the day, and reached towards the 1.23 level above. Ultimately, if we pull back from here, I think it will offer value that we can take advantage of. The market is most certainly bullish now, as we have broken above major resistance in the form of the 1.21 handle. Longer-term, I anticipate that the market is going to go to the 1.24 level, and then eventually the 1.25 level. I think that the market should continue to see volatility, but most certainly will be to the upside.

I believe that the “floor” is the 1.20 level underneath, as it is the bottom of the “zone” that begins at the 1.21 handle. Longer-term, we should go to the 1.25 level, and then beyond that. I think that the Euro will continue to be a beneficiary of the pummeling of the US dollar. I think this is going to be the overall attitude for 2018, so this continues to be a “buy on the dips” market going forward. I would anticipate that the 1.24 area begins a significant resistance to the 1.25 level, based upon longer-term charts. However, when we pull back it will be the market trying to build up the momentum to finally break out. I fully anticipate that we go much higher over the next several months, if not years.

If we did manage to break below the 1.20 level underneath, that would be an extraordinarily negative sign, but considering that we are 250 pips away from there as I record this, I don’t think it’s happening.