EUR/USD Price forecast for the week of February 19, 2018, Technical Analysis
The EUR/USD pair continues to try to grind higher, and eventually breaking above the 1.25 level during the week but gave back some of those gains. Longer-term, when I look at this chart I recognize that we have broken above the top of a bullish flag, and that signifies that we should go looking towards the 1.32 handle.
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I believe that the 1.21 level should be supportive, because it was so resistive in the past. I think that any move towards that area will probably find a lot of buying pressure, not to mention the fact that we have a nice uptrend line just below there, so it’s only a matter of time before value hunters would come out. The US dollar has been selling off, as the bond markets have been hit as of late. I believe that if we can break above the top of the range for the previous week, the market should continue to go much higher, and given enough time I think that’s exactly what happens. That doesn’t mean that happens this week, so if you are a longer-term trader, you should probably jump in slowly, and add to your position as we make fresh, new highs. Otherwise, if we were to break down below the 1.21 handle, I think the market will go looking towards the 1.20 level.