EUR/USD Price Forecast February 23, 2018, Technical Analysis

The EUR/USD pair has rallied a bit during the trading session on Thursday, reaching towards the 1.2350 level. That’s an area that should be resistance, as it has been in the past. However, if we can break above that level it’s looking very much like a market that’s ready to continue to go higher, perhaps reaching towards the 1.25 level above. Otherwise, we could roll over and reach down towards the 1.2270 level, which has offered a bit of support. This is a market that continues to be very noisy, and a main driver of where the US dollar will go overall.

I believe that this market is going to be choppy and go sideways for the short term, and I believe that eventually we will make the decision to go higher. However, I’m not willing to put a lot of money to work right now, because it seems as if there’s a lot of digesting to do. Because of this, the market is one that I will approach cautiously, and I also recognize that even short-term selling is possible, even though I have a bullish longer-term outlook.

I believe that there is a massive amount of support at the 1.21 handle, which was the scene of a major resistance barrier in the past. I believe that the market continues to find that area supported, as it lines up nicely with horizontal support, as well as a larger uptrend line. Expect a lot of noise, but ultimately, I think that we are awaiting some type of impulsive move to put money to work.

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