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

The EUR/USD pair has been bullish during the trading session on Thursday, reaching towards the vital 1.25 level. This area has offered resistance though, which of course makes a lot of traders take profit. I believe that the market should continue to be noisy, but eventually in the end I think that the buyers do went out. Breaking above the 1.25 level for sustained moved to the 1.32 level is my longer-term thesis for this market, mainly due to the bullish flag on the weekly chart that has broken to the upside. It measures for a move to that level, and my experience has been that these flacks tend to pan out over the long term.

I believe that there is support underneath that the 1.24 level, and I believe that there is even more support at the 1.23 level. Pullbacks of this point should be looked at as the market trying to build up the necessary momentum to break out, which of course it will eventually. It’s not until we break down below the 1.21 level that I would be concerned about the uptrend, and quite frankly that looks to be very unlikely at this point. Once we break above the 1.25 level, I look at pullbacks as opportunities to add to a larger core position. In general, I am bullish and think that most of the market is right there with me.

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