EUR/USD Price Forecast March 5, 2018, Technical Analysis

The EUR/USD pair has rallied a bit during the trading session on Friday, reaching towards the 1.23 handle. This is an area that of course is psychologically important, and it was an area where we had seen previous support. I think that if we can break above the top of this little range here, we could go much higher. That’s the market breaking above the 1.2350 level, something that will take a bit of effort. If we do, then I think the market goes to the 1.25 handle. What’s interesting is that the weekly candle is a hammer, so I think that the buyers are coming back to try and break out to the upside.

Looking at this chart, I also recognize that there is a massive amount of support based upon that hammer, so I think that even if we did from here, it’s likely that the buyers are willing to pick up value as it appears. The 1.21 level below is massively supportive, just as it was massive resistance. I still have a longer-term target of the 1.32 handle, so my bias is still for a move higher. The 1.25 level will be resistive, so I think we are simply trying to build up enough momentum to continue to go above there. Every time we rally, it’s chipping away at the resistance, and I think eventually we will be victorious. If we break down below the uptrend line, which essentially coincides with the 1.21 handle, at that point I think the Euro could unwind quite a bit.

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