EUR/USD Price forecast for the week of March 12, 2018, Technical Analysis

The EUR/USD pair initially rally during the week but has turned back around to form a shooting star. This was preceded by a hammer, which of course is a very bullish sign, and in this scenario, we quite often see a lot of consolidation. Because of this, I think longer-term traders, although bullish, will have to be patient to receive their gains. · FX Empire

Christopher Lewis

Updated Fri, Mar 9, 2018, 10:29 PM

The Euro rallied during most of the week but gave back gains after the stronger than anticipated jobs number out of America. The shooting star shows signs of resistance, just as the hammer from the previous week show signs of buying pressure. The 1.21 level underneath offers support, just as the 1.25 level above offers resistance. Ultimately, this is a range that I think the market will find itself in for a while, and I think that the market participants that are probably going to have to be able to be patient enough to wait for the market to make up its mind. I think short-term traders will love this trading range though, because it’s such an obvious area to trade.

If we were to break down below the 1.21 handle, it would not only break a significant support level, but I would also send this market looking for the 1.19 level next. If we can find buyers on dips, I think we continue to grind sideways, but a break above the 1.25 handle would be very bullish, sending this market towards the 1.32 level, based upon breaking above the top of the bullish flag that you see on the chart. I am bullish of this pair, but I also recognize that it’s not going to be a straight shot to the upside necessarily.