EUR/USD Price Forecast February 28, 2018, Technical Analysis

The EUR/USD pair has fallen during the trading session on Tuesday, reaching down towards the 1.2250 level underneath, which has offered support a couple of times already, so it makes sense that we will continue to see buyers jump into this market place. I also believe that there will be sellers near the 1.2350 level, but if we can break above that level I think that we continue to go much higher, perhaps reaching towards the 1.25 level after that. A break above that level is a longer-term “buy-and-hold” market just waiting to happen, based upon the longer-term charts.
Speaking of the longer-term charts, on the weekly time frame we have broken above a bullish flag, and that should send this market towards the 1.32 level given enough time. I think that buying dips continues to be the way going forward, but I also recognize that there are a lot of questions about what the Federal Reserve is going to do and of course whether the European Central Bank is going to step away from quantitative easing. I believe that the Euro continues to strengthen over the longer term, and although it will be very noisy, it makes sense that we will continue to see buyers step in and pick up the currency every time it looks a bit cheap. The US dollar is on the precipice of breaking down through significant support on the US Dollar Index, and that will of course send this market much higher as a result.

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