EUR/USD Price Forecast March 28, 2018, Technical Analysis
The EUR/USD pair has fallen significantly during the trading session on Tuesday, reaching down to the 1.2350 level. It’s possible that we will start to see buyers in this area, as it was resistance in the past. We are still in an uptrend, and I still believe that the market is likely to continue to go looking towards the 1.25 level above, and then perhaps to the 1.32 level after that based upon the bullish flag being broken to the upside on the weekly chart.
I believe that the market will continue to favor the upside as the ECB is likely to step away from quantitative easing later this year, and we already know that the Federal Reserve is going to raise interest rates. However, there’s also the question as to whether the market even believes that the Federal Reserve is going to raise interest rates as much as they say.
Your capital is at risk
In the short term, I think that the 1.25 level is a major resistance barrier above, and it will take several attempts to finally break through it. Once we do, I would be more than willing to add to a long position. As far as shorting is concerned, I don’t have any interest in doing so right now, I believe that if we can stay above the 1.21 level, the market will continue to be a “buy on the dips” market in general, and it will continue to offer plenty of opportunities for those who are patient enough.