EUR/USD Price forecast for the week of December 11, 2017, Technical Analysis

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The EUR/USD pair continues to be very noisy, but looks likely to find support just below current levels. · FX Empire

Christopher Lewis

Updated Fri, Dec 8, 2017, 11:23 PM

The EUR/USD pair gapped lower at the beginning of the week, and then sliced through the 1.18 handle. By doing so, we reached towards the 23.6% Fibonacci retracement level from the recent move, and I believe that we will continue to see a lot of attention between the 1.17 level underneath, and the 1.18 level above. This is a market that continues to be bullish overall, but I think that it’s not until we break down below the 1.15 level that my overall attitude and technical analysis has changed, as it looks like we are trying to form some type of massive bullish flag. A break above the top of the bullish flag could send this market as high as 1.32 next year, based upon the measurement. If we were to break down below the 1.15 handle, the market then breaks down to the 1.13 handle. I think longer-term traders need to be patient, and see if we can get the proper signal or break out.

In general, I do believe that this pair should continue to climb because quite frankly, the trading community knows that the Federal Reserve is likely to raise interest rates, and this will probably have Artie been considered when we place our trades. By being patient, you can get a better entry, and I certainly suggest that perhaps looking to short-term charts for a better price will pay off for the longer-term outlook.

I think that the pair is historically cheap, and I believe that a lot of traders are starting to look at it as such. The quantitative easing out of the European Central Bank is going to slow down, and if they shock the market with even more of a cut from QE, that could turbocharge this market.