EUR/USD Forecast October 16, 2017, Technical Analysis

EUR/USD daily chart, October 16, 2017

The EUR/USD pair continues to see a lot of volatility during the session on Friday, as we initially tried to rally, then pulled back. However, we get an explosive move after there were less than impressive CPI numbers coming out of the United States. Ultimately, this is a market that I think is going to continue to try to rally, and I think these pullbacks offer opportunities to pick up value. Ultimately, I think that the market is going to try to reach towards the 1.19 level above, and a break above there probably sends this market to the 1.20 level above. That is a very resistive area, but eventually we will break above there and continue to go to the 1.25 level longer term. After all, we have recently broken out above a consolidation area that lasted almost 3 years, and once we broke above the 1.15 level, the market then measured for a move to that 1.25 handle.

I believe that this market continues to offer buying opportunities every time we drop, and I believe that the 1.18 level is the short-term “floor” in the market. Ultimately, the market continues to show plenty of volatility, but if you are patient enough, you should find buying opportunities going forward. I have no interest in shorting this market until we break down below the 1.15 handle, something that is very unlikely to happen anytime soon. Because of this, it is only a matter of time before I am long of this pair. Any time we pull back from here, I think that the market should continue to look for reason enough to go long. Ultimately, I have no interest in trying to fight what should be a longer-term uptrend just waiting to happen.

Written by FX Empire