EUR/USD Forecast May 8, 2017, Technical Analysis

EUR/USD daily chart, May 08, 2017

The EUR/USD pair had a very volatile session during the Friday trading hours, as the jobs number in the United States surprised to the upside. In a sense, we already have this move happen during the Thursday session, as we broke out above the consolidation area that the market has been stuck in for some time. Now that we have done that, and then pulled back to test the 1.0950 level for support which had been so resistive in the past, it makes sense that we reached towards the 1.10 level. After all, it appears that traders had already made up their mind as to which direction this pair was going. When we did pull back to the previous resistance, it was a perfect opportunity to take advantage of value in the EUR. If we can break above the 1.10 level above, we should then be free to go much higher. Even if we don’t during the late hours on Friday, it looks as if we are going to form a very bullish looking daily candle. That could foretell what’s going to happen next week.

With this in mind, I’m a buyer.

I believe that this market will eventually break out. I don’t have any interest in selling, and although I can make an argument for filling the gap underneath that happened a couple of weeks ago, the reality is that it would take a significant amount of bearish pressure to have the market reaching towards that area. It may do that someday, but I think at this point it looks like the buyers are still very active in this market, and that they are very vigilant and resilient. I do recognize that breaking above the 1.10 level is a significant task, but it appears the market is already trying.

Written by FX Empire