EUR/USD Price Forecast January 2, 2018, Technical Analysis

The EUR/USD pair broke out during the trading session on Friday, as we have seen a massive explosion in price, clearing the 1.20 level. Beyond that, we have recently broken above a bullish flag, so there should be plenty of reasons for this market to go higher. · FX Empire

Christopher Lewis

Updated Fri, Dec 29, 2017, 9:44 PM

As the US dollar sold off against most currencies around the world, it’s no surprise that this pair rallied. We broke above the 1.20 level, and it now looks as if the 1.20 level is offering a bit of a floor, and we could go looking towards 1.21 level after that. That’s an area that once broken, makes a “higher high” on the longer-term charts, and I think it opens up the door to the 1.25 level. Ultimately, pullbacks offer value, and I think that they also offer an opportunity to add to an already long core position.

If we were to break down below the 1.1950 level, the market should turn around and drop significantly. Ultimately, this is a market that I think is going to show a lot of strength, with the US dollar losing again so many different currencies, it makes sense that the market should continue to climb. I think that once the volume comes back after the holidays, we should see a serious move into this pair. Keep in mind that the jobs number is coming out later this week, so that of course will have its influence on this market also, but I think we are already starting to see the market show where it wants to go, so given enough time it’s likely that we will see more money chase the EUR/USD pair to the upside. It could be volatile, but once we clear the 1.21 handle, I’m willing to not only add to the position, but to become aggressive.