EUR/USD forecast for the week of December 18, 2017, Technical Analysis

When I look at the longer-term weekly chart, I clearly see a bullish flag, which I suspect most of the world does as well. Because of this, I think it’s only a matter of time before the buyers come back in and pick this market up, but with the market forming a shooting star of the last week, I think we may need to pull back to find the necessary momentum. I anticipate that somewhere near the 1.15 handle underneath should be an opportunity for people to look at this market in a value-oriented fashion, and at that point I would anticipate that plenty of buyers will return. Alternately, if we break above the top of the shooting star candle for the week, then that would be a very bullish sign as well. I think there are a lot of concerns about the US tax bill, and we don’t know exactly which way that’s going, or if it will even be done between now and the end of the year. Right now, I suspect it’s only a matter of time before they sign something, but this of course is speculation.

Longer-term, this bullish flag suggests that we are going to go to the 1.32 handle above, but obviously we have a lot of work and momentum building to do before we can see that type of explosive momentum. In the meantime, I think buying the dips and adding to your small position longer term is probably the best way to deal with what I think is going to be a strong move in 2018.

EUR USD Forecast Video 18.12.17