EUR/USD Price Forecast January 22, 2018, Technical Analysis

The EUR/USD pair initially rally during the day on Friday, but found enough trouble at the 1.23 level to roll over and reach towards the 1.2233 level. I think that the market will eventually find plenty of buyers, and on the hourly chart it looks likely that we are going to see a bit of support underneath. Ultimately though, I think the 1.21 level underneath is massive support as well, so the closer we get to that area, the more likely a.m. to start buying the EUR again. Given mind that the US dollar has been be enough rather significantly, so it may make sense to see a pullback, and that gives us an opportunity to pick up the market based upon value. It’s not until we break down below the 1.20 level that I am concerned about the trend, and I think that given enough time we will probably go to the 1.25 handle, and then eventually much higher.

The uptrend is very much intact, and on the weekly chart we even broke above the top of a bullish flag. That doesn’t mean that we are going to go higher forever, but certainly this pullback should be thought of as an opportunity to add to a position that you arty have, or perhaps start a new one. I would prefer to add on dips going higher, as I think the trend is going to continue to be a major story in this pair.

Economic Calendar