If we break above the 1.1950 level, it’s likely that we will go looking towards the 1.20 level, and then eventually the 1.21 handle. I recognize that we could be breaking out of a bullish flag, on the weekly timeframe. If that’s the case, this market could go as high as 1.32 and I think that the markets are starting to punish the US dollar handily enough that we could see this move attempted to sometime next year. Ultimately, I think that the pullbacks at this point should be thought of as buying opportunities, as the 1.19 level should be a bit of massive support. If we break down below there, then I think we could go to the 1.18 handle after that.
Breaking above the 1.21 handle would be very difficult, but once we get above there, I think that we will see the market accelerate to the upside but don’t forget: this is the most heavily traded financial instrument in the world, meaning that we are going to see pullbacks occasionally, and of course sudden movements. However, I think that over the longer term, it looks like the pair is ready to go much higher, and I think that the momentum is starting to pick up. The first couple of weeks in January will be vital, and therefore could dictate where we go next. I believe that we are starting to see a bit of a sneak peek as to where we could end up, so I have become very optimistic.
EURUSD analysis Video 29.12.17
This article was originally posted on FX Empire