EUR/USD Forecast July 31, 2017, Technical Analysis

EUR/USD daily chart, July 31, 2017

The EUR/USD pair went higher during the day, it is grinding over the longer term. It looks as if the market is testing the 1.1750 level, and a break above there should send this market much higher. However, we are bit overbought, so I think that we are going to continue to see the necessity of pulling back from time to time. I think that there is plenty of support below though, so given enough time the pullbacks will offer value the people take advantage of. After all, the Federal Reserve looks very likely to remain dovish, or at least less hawkish than once thought, so the market should continue to be one that offers buying opportunities.

The 1.1850 level is my target

Longer-term, I believe that the 1.1850 level is the target same form. We probably go higher than that, but in the short term I think that’s about as far as we can go without seen some type of massive correction. Short-term pullbacks offer opportunities, and I will look at the massage. I believe that there are plenty of people that have missed this sudden surge higher, and they will of course be willing to take advantage of it. Ultimately, I think that the 1.15 level underneath is the absolute “basement” of the market, and therefore it’s not until we break down below there that I would be interested in selling. Until then, this is a buy on the dips type of situation. The last couple of days have shown just how much resiliency there is in the market, so with that being the case it’s likely that there will always be somebody out there looking to buy, least over the next several weeks, if not months. I would love to see some type of significant pullback though.

Written by FX Empire