EUR/USD Price Forecast January 5, 2018, Technical Analysis

The EUR/USD pair drifted sideways initially at the open on Thursday, but then found enough of buying pressure to reach towards the 1.2075 level. Ultimately, I believe the 1.21 handle above is resistance, but if we can break above there, we will more than likely continue to go much higher. The markets will be dealing with the Nonfarm Payroll Numbers today, and that being the case it’s likely that the markets may be choppy between now and then. Ultimately though, I think that the 1.20 level underneath is a bit of a “floor”, and with this being the case it’s likely that dips will offer buying opportunities. However, we will see a lot of volatility, so be careful with this market today, as the liquidity will drop to almost zero during the announcement.

I believe that the market is continuing to go higher over the longer term, but by taking advantage of dips, you can pick up a little bit of value in a marketplace that I think will eventually continue the overall attitude. The 1.25 level above is the next psychological number, and as we have recently broken above the bullish flag on the weekly chart, it looks likely that we continue to go much higher. The 1.19 level underneath is the “floor” in the market, and essentially the bottom of the uptrend. If we were to break down below there, the market would be in trouble. Until then, I’m looking to buy only.

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