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

The EUR/USD pair rallied a bit during the trading session on Friday but stayed in a very tight range. We should continue to see a lot of sideways action, as the market is in an uptrend, but there’s really nowhere to go as there are a lot of fears about a potential trade war. Because of that, I think it’s likely that we will see short-term scalping at best, but we have the uptrend line that the market should continue to go higher eventually. I think that the 1.21 level under there is support as well. Markets continue to be very noisy, but I think that eventually we should try to go towards the 1.25 level above, which was the most recent resistance barrier.

When I do my analysis on longer-term charts, I recognize that there is a bullish flag that broke out to the upside, suggesting that we could go as high as the 1.32 handle. Obviously, it will take a while to get there, but at this point I believe that most traders are looking at this as a “buy on the dips” pair. As the United States is currently starting a trade war with the Chinese, it’s likely that the US dollar will continue to suffer in general. I think that there is a lot of risk in the currency markets right now, so I would keep my position size small to say the least. However, I think that if we finally do break above the 1.25 handle, you can start to add to a position and get a bit more aggressive.