EUR/USD Price Forecast February 20, 2018, Technical Analysis

The EUR/USD pair has broken down a bit during the day on Monday, slicing towards the 1.2350 level underneath, which is essentially the 50% Fibonacci retracement level on the short-term charts. I believe that the market will probably bounce from here, or at least in this general vicinity. You can make an argument for a longer uptrend just waiting to happen, but the market is going to continue to be skittish as well, as the market has a lot of questions going forward.

I believe that the US dollar is going to continue to sell off, as we have a lot of concerns about the treasury market. However, I also recognize that there is a lot of noise in the markets overall. I believe that given enough time, the market will probably go to the 1.25 handle above, which is a large, round, psychologically significant number. If we can break above the recent high, the market should continue to go even further to the upside. I believe that the “bottom” of the uptrend is closer to the 1.21 handle, so even if we do break down, I believe that if you are patient enough, you should get a nice opportunity to pick up a large move here, but obviously markets are going to be volatile in the short term, so be careful and add slowly, perhaps adding bits and pieces as the market moves in your favor.

Economic Calendar