EUR/USD Price Forecast January 31, 2018, Technical Analysis
The EUR/USD pair has rallied significantly during the trading session on Tuesday, reaching towards the 1.2450 level as I record this video. The 1.25 level above is massive resistance, based upon not only structural selling, but the large, round, psychologically significant number. However, the recent pullback has only offered a buying opportunity, and it looks as if the pair should continue to rally rather significantly. If we can clear to a fresh, new high, the market should continue to go much higher, and based upon longer-term charts I believe this will eventually be the case.
By breaking the top of a bullish flag on the weekly chart, I have had a target of 1.32 in the EUR/USD pair for a while, and there is nothing on this chart that suggests it isn’t going to happen. I believe that given enough time, we will not only reach the 1.32 handle, but we will probably go much higher. It appears that the US dollar is going to continue to struggle during 2018, and I believe that you will continue to see the US dollar selloff not only against the Euro, but other currencies around the world.
I like buying pullbacks, because it offers an opportunity to pick up value, which is what helps you build a larger core position that you can take advantage of. Ultimately, I believe that the market will continue to be volatile at times, but the market has been decidedly bullish for the better part of the last year. Selling is not a thought.