EUR/USD Price Forecast February 26, 2018, Technical Analysis

The EUR/USD pair went back and forth during the trading session on Friday, as we continue to try to build some type of base. I believe that the 1.2250 level should be supportive underneath, but it’s short-term support at best, so if we break down there it would be a huge surprise. Ultimately though, I do like buying this pair as the US dollar has been struggling. I think given enough time we could find plenty of reason to sell the US dollar, especially considering how the treasury markets have been actively. I believe that ultimately this pair does go higher, based upon the longer-term charts, and of course the fundamentals.

As we broke out of the bullish flag on the weekly chart, in measured for a move to the 1.32 handle, something that we obviously have achieved yet. That’s my longer-term target and I look at these pullbacks as an opportunity to pick up value. Currently, I believe that a break above the 1.2350 level is reason enough to go long again, and it should bring in fresh money. I don’t have any interest in shorting, although I do recognize that there is plenty of possibility of a short-term pullback. In general, this is essentially a “buy only” market, but I need momentum to the upside to start taking advantage of before I put any of my trading capital at risk. Longer-term charter consolidating, that might be what we’re going to see over the next 24 hours.

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