EUR/USD Price Forecast January 26, 2018, Technical Analysis

The EUR/USD pair rallied significantly during the day on Thursday, slamming into the 1.25 handle above, and then slicing through it again. I think that the market is going to continue to go to the upside, you should look at pullbacks as potential value in what I think is ending up being a very strong move. The 1.240 below should be the “floor” in the market, so keep that in mind. Longer-term, I think that we could reach towards the 1.26 level, and then eventually the 1.30 level after that. When I look at the longer-term charts, there is a bullish flag that we had recently broken out of, and that suggests that we are going to go to the 1.32 handle eventually. Obviously, that’s a longer-term call but I think that is probably reached sometime this year. I look at pullbacks as value that should be taken advantage of, and I have no interest in trying to sell this pair, as recent US government comments have suggested that a weaker US dollar helps.

There is plenty of volatility to be found, but those moments should be looked at as the opportunity to take advantage of what has been such a strong trend. I recognize that we are overextended, but that’s the nature of markets these days, overreacting. I would not only be going long of this market, but I would be adding every time it dips, if we can stay above the 1.24 handle below, as it should be important.

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