The EUR/USD pair has exploded during the week, breaking above the downtrend line that we have seen for the top of the potential bullish flag. I think now we will probably see this market rally significantly during the year, and I plan to add on dips. We do have the jobs number coming out later this week though, so it’s likely that we will see some volatility towards Friday. Once we break above the 1.21 handle, I believe there is a measured move to the 1.32 handle, but that obviously is further down the road. This is a classic “bullish flag” formation, and I believe that the rest of the trading community will be looking at it as an obvious signal to start buying.

We could pull back to the previous downtrend line, but I think if we can stay above that, it’s a sign that we need to get involved. If we were to break down below that line, that would change everything, but I don’t think that’s going to happen given the massive momentum previously. I believe that there will be the occasional pullback anyway, but look at those as value as it is a turnaround in the making. If we were to break down, we could drop to the 1.15 level, but I think it would take something extraordinary to make that happen as the US dollar has been selling off against almost everything that I follow.

EUR USD Forecast Video 02.01.18

This article was originally posted on FX Empire

More From FXEMPIRE:

• ETH/USD Price Forecast January 2, 2018, Technical Analysis

• S&P 500 forecast for the week of January 2, 2018, Technical Analysis

• GBP/USD forecast for the week of January 2, 2018, Technical Analysis

• AUD/USD forecast for the week of January 2, 2018, Technical Analysis

• Crude Oil Price forecast for the week of January 2, 2018, Technical Analysis

• ETH/USD forecast for the week of January 2, 2018, Technical Analysis