EUR/USD Price Forecast March 8, 2018, Technical Analysis

The EUR/USD pair has rolled over a bit during the trading session on Wednesday, reaching down to the 50 EMA on the hourly chart. So far, it is holding, and it is an area that buyers have been interested in. Even if we break down below here, I believe that the 1.2350 level will offer a bit of support. I think that given enough time, we will then go looking towards the 1.25 handle above which is a massive resistance. A break above there allows this market to continue to go much higher, and the start to fulfill the longer-term trade that I am looking at, a reach towards the 1.32 handle above. After all, we have recently broken above the top of a bullish flag, which measured for that move. I believe that we will continue to see this pair picked up on pullbacks, and I also believe that the 1.32 level will be reached sometime this year, although it might be towards the end of summer.
It is not until we break down below the 1.21 handle that I am concerned about the uptrend. At this point, there are plenty of areas underneath that should offer support that we could start picking up the EUR on, but keep in mind that the volatility will continue to be very difficult as there are a lot of headlines crossing the wires that affect risk appetite. I would be bullish yet cautious.

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