The EUR/USD pair rolled over a bit during the trading session on Monday, as the 1.20 level underneath had been broken. I think that the 1.19 level underneath is also supportive, so even if we do continue to go a bit lower, it’s likely that it will only offer more value for people who are interested in going long. I do not have any interest in selling this market going forward, because we have a bullish flag on the weekly chart that has recently been broken to the upside. That suggests that we are going to go to the 1.32 level on the upside, but that of course is a long-term target. I believe the pullbacks offer value, and with the US dollar looking so weak over the last month or so, I believe that it shows where we want to go for 2018.
The 1.21 level above is massive resistance, and once we can clear that area, the market will be much more bullish going forward, offering plenty of “buy on the dips” attitudes. I think that the 1.24 level above will be targeted after that, and then 1.25. At this point, short-term pullbacks offer buying opportunities as well as the potential break out above, but I would add slowly in this market, as the volatility will probably continue. Going higher over the longer term is my expectation, but I also recognize that jumping into aggressively could cause undue stress to your account.
Written by FX Empire