EUR/USD Price Forecast February 7, 2018, Technical Analysis

The EUR/USD pair fell hard in the middle of the session on Wednesday, as the 1.24 level offered far too much resistance. However, as I record this we are starting to see signs of life above the 1.23 handle, so we may get a bit of a bounce. If we can break above the 1.2350 level above, that should send the market reaching towards the 1.24 level again. That area of course will be resistive, but if we can clear that area handily, the market should be free to go back towards the 1.25 level.

Longer-term, I believe that the market is trying to figure out whether we can break above the 1.25 handle, and if we do I think that it will be a significant milestone in this pair. Underneath, the 1.23 level underneath is rather supportive, and I believe that the market will continue to respect that area. If it does not, that could be a negative sign for the EUR/USD pair, sending it towards the 1.21 level again. I also believe that the 1.20 level under there will be massively supportive, and most of the selling is probably due to risk appetite leaving the stock markets, as we have taken a bit of a bashing globally over the last couple of sessions. I believe that this a short-term issue though, so eventually I would anticipate buying again.

Longer-term, when I look at the weekly chart I still have a target of 1.32 above, based upon a bullish flag that has been broken. That isn’t to say that we are going straight there, as is typical.