EUR/USD Price Forecast November 15, 2017, Technical Analysis

EUR/USD daily chart, November 15, 2017

The EUR/USD pair broke out during the trading session on Tuesday, slicing through the 1.17 level. This is a very bullish sign as that was the neckline of a head and shoulders, and it now negates what would have been a very negative move in this pair. Because of this, it looks as if the market is probably going to continue to be a “buy on the dips” marketplace, especially now that we have proven that the buyers are very much interested in going long. I think that the biggest problem with this market is that the US Congress can’t get tax reform together. If they were to suddenly get it together, the market would probably turn around almost immediately. It is because of this that stop losses will be crucial, and you should make sure that you use them. I believe that if we can stay above the 1.17 level, the market will probably go looking towards the 1.20 level above, and then eventually the 1.21 level. If we were to fall below the 1.17 level again, we could make another run towards the 1.13 level, which was the measured move from the head and shoulders. However, things look very bullish in the short term, and that could continue to send this market to the upside.

Given enough time, I suspect that we will even break above the 1.21 handle, which could begin a long moved to the upside, and more of a buy-and-hold type of attitude. If we were to pull back from here, it’s likely that the 1.13 level would bring a lot of interest, as it is the 50% Fibonacci retracement level from the surge to the upside. However, I believe that the longer-term uptrend has reasserted itself.

Written by FX Empire