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

The EUR/USD pair rallied significantly during the trading session on Tuesday, reaching towards the 1.24 level, an area that is massive in its significance, as it opens the door to the 1.25 handle which I see as the most recent barrier that the market will eventually go looking to break over. If we can do that, I think we will go much higher, perhaps to my longer-term target of 1.32 above, based upon longer-term analysis on the weekly time frame. In the meantime, I suspect that every time we pull back, there will be value hunters willing to step into the market and continue to go to the upside. I think that the 1.23 level will be a bit of a support level, so I would love to get involved on some type of bounce from that area. If we break down below the 1.23 level, the market probably goes looking towards the 1.22 level after that.

I have no interest in shorting this market, and I think that part of the below or to this pair is that we are so obviously trying to break out. Once we get that moved, I think fresh money will come into the market above the 1.25 handle, reaching to much higher levels. In general, I like the idea of buying these dips and adding slowly, because eventually we should have traders coming in and joining what should be an obvious move. It is not until we break down below the 1.21 handle that I would be concerned.

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