EUR/USD Price Forecast March 22, 2018, Technical Analysis

The EUR/USD pair has rallied during the trading session on Monday, going into the monetary policy statement. I think that we have a lot of potential trouble coming out of the monetary policy statement, but I believe that the end of the day will see some type of significant decision made as to where the US dollar goes. If the statement is very hawkish, it could see the EUR/USD pair rollover rather significantly in go down towards the 1.22 handle, perhaps down to the 1.21 level after that. There’s also a major uptrend line that should continue to keep this market going higher. Ultimately, I believe that the monetary policy statement being more dummy should send this market to the upside, perhaps reaching towards the 1.24 level. Longer-term, we have seen the EUR/USD pair rally significantly, but I also recognize that this type of volatility is going to come into focus for the marketplace, as the ECB has to deal with less than stellar German economic figures.

Ultimately, I think that the market will try to go to the 1.25 level above, and perhaps even try to break above there and go to the 1.32 handle, based upon the bullish flag on the weekly chart being broken to the upside. I have no interest in shorting this market, least not until we break down below the 1.21 handle. Ultimately, this is a market that I think eventually will offer a longer-term move, but ultimately the EUR/USD pair will continue to be extraordinarily choppy.