EUR/USD forecast for the week of May 22, 2017, Technical Analysis

The EUR/USD pair rally during the week, slicing above the 1.10 level significantly. In fact, we slammed into the 1.12 level during the Friday session, and it now looks as if the we are going to try to break above there. Pullbacks should be buying opportunities, but you will probably have to look for those on short-term charts. I believe that the 1.10 level should be significantly supportive, and that as long as we can stay above there the only thing you can do is go long. That’s not to say that this is going to be an easy move, it never is, but I think that the noise above extends all the way to the 1.15 level and it’s likely that the traders out there will continue to try to push and that general direction as we have been consolidating up to that level since the end of 2014. That’s right, even though this looks like an explosive moved higher, we are still simply consolidating as we have been for 3 years.

Back and forth

I believe that civil back and for trading is probably how this is going to play out yet again, and longer-term traders are simply placing a trade every several months in one direction or the other and hanging on. This is a very impulsive looking candle, but quite frankly this is in the first time we’ve seen one. It’s not until we would stay above the 1.15 level on a weekly close that I would be convinced that were going to break out to the upside for a longer-term move, but I do think that the next couple of handles in this market will probably be positive, and not negative. Pullbacks should represent value.

EUR USD Forecast Video 22.5.17