EUR/USD Price Forecast January 8, 2018, Technical Analysis

The EUR/USD pair drifted a bit lower during the trading session on Friday, as it looks likely to test the 1.20 level underneath again. However, we remain very bullish in general, and look likely to test a major resistance barrier above. · FX Empire

Christopher Lewis

Updated Fri, Jan 5, 2018, 7:30 PM

The EUR/USD pair drifted a bit lower during the trading session on Friday, after spiking shortly after the Nonfarm Payroll announcement missed jobs growth in December. I believe that the market will eventually find reasons to go higher, and that the 1.20 level underneath should continue to offer buying opportunities. After all, we have a gap just above the 1.20 level, and although the 1.21 level above has been resistive in the past, I think it is only a matter of time before we break out and continue the move to the upside.

When I look at the longer-term weekly chart, it is apparent that we have broken above the top of a bullish flag recently, and it suggests to me that we will eventually go looking towards the 1.32 handle. It’s going to take a long time to get there obviously, but the pair seems to be ready to rally every time we pull back with any type of significance. Because of this, I’m willing to add on dips, building up a large position for when I think will be a longer-term target. In the meantime, expect a lot of noise but that’s okay, the markets should continue to favor the uptrend that we have been in for some time.

As the market continues to be very noisy, look at it as either “expensive” or “cheap.” I believe that value hunters will continue to be attracted to the market, and that they will most certainly become much more aggressive above the 1.21 handle.