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The EUR/USD pair has fallen during most of the week but found enough support near the 1.21 level to show signs of life again, forming a hammer. The hammer of course is one of my favorite candles to trade, showing signs of resiliency at the level just below. This was the scene of a major breakout, so the fact that we found support here is also encouraging. The uptrend line just below there should continue to see bullish pressure as well, and I think that the 1.25 level is about to be targeted. If we can make a fresh, new high, we should then reach towards the 1.25 level after that.
The 1.21 level in the uptrend line underneath will keep this market higher, and I think that if we were to break down below there, that would change everything. However, I recognize that the move would take some type of reason to happen, and with the United States looking to impose tariffs on steel and aluminum, I think people are moving away from the US dollar because of this. We been in an uptrend anyways, so this was probably the excuse that we needed. Based upon the previous bullish flag, the market should be looking for the 1.32 level longer term, and I maintain that is still my target for later this year. That doesn’t mean it will be volatile, but at the end of the day I think that’s where we are going.
EUR USD Forecast Video 05.03.18
This article was originally posted on FX Empire