The EUR/USD pair rallied again on Friday, as we have broken above the 1.19 handle. Because of this, the market looks likely to continue to rally longer-term, and I believe that pullbacks should offer plenty of value the people will take advantage of. The 1.1850 level just below is the first support level, and I think that any pullback to that area could offer a nice opportunity to take advantage of what has been an explosive move over the last 3 days. The 1.17 level underneath is the “floor” in the market, and I think that the buyers are looking to go towards the 1.21 handle above which is the recent highs. A break above the 1.21 handle should send this market much higher, and free the EUR to extend the run much higher.

I think that there could be a bit of volatility over the next couple of sessions, as the US Congress has come into focus. The inability to pass significant tax legislation should continue to weigh against the value of the US dollar. If that’s going to continue to be the case, then obviously this is a market that you can’t short. Currently, it looks as if the market is prepared to extend rallies going forward, but one thing you should keep in mind is that liquidity would’ve been an issue towards the end of the day on Friday, so the move may have been a bit exaggerated. Once liquidity comes back into the marketplace, we may see a bit more choppiness, but I still believe in the overall health of the rally, as this week has been very good to the buyers. By adding to your position on dips, you should be able to have a large position on the eventual break out.

EUR/USD Video 27.11.17

This article was originally posted on FX Empire

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