EUR/USD Price Forecast November 29, 2017, Technical Analysis

EUR/USD daily chart, November 29, 2017

The EUR/USD pair spent most of the day going sideways on Tuesday, but then pulled back to reach towards the 1.2860 level underneath. It is the 38.2% Fibonacci retracement level from the move higher, and we are starting to see buyers jump back into this market. Given enough time, the market probably goes back towards the 1.1950 level above, which was the highs from Monday. Eventually, I believe that we go to the 1.21 level above which was the highs that we had recently had, and this pullback that we have seen in the EUR/USD pair has been healthy, and it gives us an opportunity to pick up a little bit of value. The US dollar continues to get hit due to the US Congress not been able to pass some type of tax reform, and even if it does it looks likely that the tax reform will be a watered-down version.

The 1.18 level underneath is the 61.8% Fibonacci retracement level, and I believe that it is the “floor” in the recent uptrend, and I think it’s only a matter of time before market participants jump in and push to the upside. If we break down below the 1.18 level, then I think we would probably drop down to the 1.17 level where we would have to make some serious decisions. Longer-term, if we can break above the 1.21 handle, the market should continue to go much higher and based upon the weekly bullish flag that I see on the weekly chart, we could go as high as the 1.32 level longer-term, perhaps late next year.

In the meantime, I believe that pullbacks are value propositions that traders will take advantage of, and I plan to do the same. Adding slowly is probably the best way to go, expecting a large move early next year.

Written by FX Empire