EUR/USD Price Forecast March 27, 2018, Technical Analysis

With the EUR/USD pair rally in so strongly during the session on Monday, it looks as if we are going to go looking towards the 1.25 handle above, an area that has been resistance more than once. If we can clear that area finally, the market is free to go much higher. I still have the long-term target 1.32, but I also recognize that we have a lot of noise between here and the 1.25 level. I think that the area between 1.24 and 1.25 it is essentially a resistive “zone”, and it’s going to take a lot of momentum to finally clear that area.

I believe that short-term pullbacks will occur, and I also believe that they are nice buying opportunities. Those buying opportunities should be picked up in small bits and pieces, in anticipation of a breakout. Once we finally get that breakout, I think that it is your job to add to your position, building up a larger position for what I think will be a significant move. I like the idea of buying these dips based upon value, and don’t have any interest in selling as I see at least 3 supportive levels underneath, including an uptrend line, the 1.21 handle, and of course the 50-day EMA. Because of this, I believe that the US dollar will continue to get sold off as this is the benchmark and should continue to be an excellent way to trade the Forex markets over the next several months. With talk of a trade war, that only continues the bearish pressure on the greenback.