EUR/USD Price forecast for the week of January 29, 2018, Technical Analysis

With the greenback getting slaughtered all across the Forex world, it’s no surprise that the EUR/USD pair wood rally. We’ve recently broken above the top of a bullish flag on the weekly chart, which measures for a move to the 1.32 handle. I believe that is still very much in effect, but the 1.25 level has caused enough resistance to have a little bit of selling on Friday. I think that the market continues to be bullish overall, but don’t be afraid to wait for a pullback to pick up value. The previous week’s shooting star being broken to the upside is a very bullish sign.

I believe that the floor in the market is close to the 1.20 level, so it’s not until we break down below there, then I’m interested in selling. Quite frankly, I don’t see that happening anytime soon, so I think that the market is going to be very resilient, and dips will more than likely end up being value and buying opportunities. You will have to be cautious though, wait for a bounce because this is the domain of high-frequency traders. The US Dollar Index tends to move in an inverse correlation, so pay attention to that as well. I do see a lot of noise above the 1.25 handle, so I think a pullback is probably necessary to build up the necessary momentum to finally go higher. I have no interest in shorting, least not until we break down below the 1.20 level, because that would negate the bullish flag that I mentioned previously.

EUR USD Forecast Video 29.01.18