EUR/USD Price Forecast February 21, 2018, Technical Analysis

The EUR has initially fallen during the session on Tuesday, reaching down to the 1.2325 handle, but found enough support at this area to show signs of life again. The 61.8% Fibonacci retracement level looks as if it’s trying to hold, and I think at this point value hunters will jump into this market. I think that a break above the 1.2375 level will send this market looking towards the 1.2450 level, and then eventually the 1.25 level, an area where we have seen a lot of resistance. A break above there then sends this market much higher.

When you look at the weekly chart, there is a bullish flag that has been broken to the upside and suggests that we have a move to the 1.32 handle in the future. Ultimately, I think that this market will find plenty of buyers, but if we were to wipe out the most recent move, meaning a breakdown below the 1.22 level, I think at that point we could be looking towards the 1.21 level underneath which is massive support.

If we make a fresh, new high, then that should only attract more money into this market and make this an impulsive move. I believe that the longer-term attitude of the EUR/USD pair is to the upside, and I think that the long-term trend will continue to favor buying the EUR overall, and more importantly – selling the US dollar longer-term. Bond markets are certainly suggesting this as well.

Economic Calendar