EUR/USD forecast for the week of October 2, 2017, Technical Analysis

The EUR/USD pair had a negative week initially, dropping down to the 1.1725 region. However, after a bit of fighting in that area, we bounced enough to form a candle that is starting to show signs of life. I believe the market probably is going to go looking towards 1.20 level again, but it is going to be very choppy as we have been parabolic for some time now. This action is healthy for the uptrend, because we had gotten far ahead of ourselves. With the European Central Bank looking likely to begin a tightening cycle, that could help this pair go higher. Based upon a recent breakout of consolidation, I have a longer-term target of 1.25 but I think it’s going to be well into 2018 before we get there.

Buying dips continues to be the way forward, and I think that the 1.17 level is going to offer a significant floor in the short term. The next couple of months could be more sideways than anything else, as we digest the massive gains that we had recently died in this pair. A break above the 1.21 level send this market much higher, but I think it’s going to be several weeks before that could happen. Because of this, I am bullish but I also recognize that this might be more or less a short-term traders market. For those looking to buy and hold, you will have to be very patient as this market has gone too far to continue this type of massive move to the upside immediately. However, I think that even if we break down from here, there should be a “floor” in the market near the 1.15 handle. With that being said, I remain bullish but patient.

EUR USD Forecast Video 02.10.17