EUR/USD forecast for the week of July 31, 2017, Technical Analysis

The EUR/USD pair initially fell during the week, but found enough support near the 1.16 level to turn around and rally. We reached above the 1.1750 level, and it now looks as if the pair will continue to climb over the longer term. Pullbacks should be buying, but we are overbought to say the least. I think that pullbacks will be necessary, as we have more than enough over exuberance to dictate that a pullback could be rather tough. The 1.15 level below should be massively supportive, and as long as we can stay above there, I remain bullish. The market has gone up in a straight line, and this always concerns me, so I think it’s only a matter of time before the sellers come back in, or at the very least, profit-taking happens. Do not let that dissuade you though, unless of course we break down below the 1.15 level.

Buying dips

I think the best thing you can do is buy dips. It may take some time, but a dip should appear that gives you an opportunity to take advantage of what has been a very strong uptrend for some time. I believe that the market is probably going to go looking for the 118.50 level longer term, but I think that we are overdone and desperately need some type pullback. Once we get to the 1.1850 level, I think you will see a much more stringent amount of resistance.

EUR USD Forecast Video 31.7.17