EUR/USD Price forecast for the week of November 6, 2017, Technical Analysis

The EUR/USD pair rallied during the week, but rolled over at the 1.17 level. That was an area that should be resistance, as it was previous support. The neckline of the daily head and shoulders has been violated, and it now looks as if we are ready to continue the downward pressure. At this point, I anticipate a move to the 1.13 level longer term, because not only is it previous structural support, but it is the measurement of the head and shoulders on the daily timeframe. Adding more credence than that is the fact that the 50% Fibonacci retracement level is right around the levels well, so I think it’s likely that every time we rally on the short-term chart, sellers are going to come back into the marketplace. However, longer-term move could present itself if you break down below the shooting star.

The 1.17 level above is resistance, and even if the market can break above that level, I suspect that it’s not until we clear the 1.18 level that it’s going to be easy enough to buy this market. The 1.21 level above is the recent high, and I think that would be the target if we do get this bullish move. However, with Mario Draghi and the European Central Bank being a bit soft, and a lot more dovish than previously, it’s likely that the market will find sellers much sooner than we find buyers. A breakdown below the 1.13 level would be very negative, however unlikely. If that happens, I suspect that the market should then go to the 1.10 level underneath, which of course is a large, round, psychologically significant figure. Either way, I think were going to see a lot of noise over the next several weeks, but it certainly looks as if the dollar is likely to rally.

EUR USD Forecast Video 06.11.17