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EUR/USD Price forecast for the week of February 19, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 17, 2018, 09:15 UTC

The EUR/USD pair has rally during the week, breaking above the 1.25 level to make a fresh, new high. However, we have pulled back significantly so it makes sense that we may struggle a bit in the near term. I think we are trying to build up the necessary momentum to finally break out, perhaps reaching towards the 1.32 level based upon my longer-term charts and the recent breakout of a bullish flag.

EUR/USD weekly chart, February 19, 2018

The EUR/USD pair continues to try to grind higher, and eventually breaking above the 1.25 level during the week but gave back some of those gains. Longer-term, when I look at this chart I recognize that we have broken above the top of a bullish flag, and that signifies that we should go looking towards the 1.32 handle.

I believe that the 1.21 level should be supportive, because it was so resistive in the past. I think that any move towards that area will probably find a lot of buying pressure, not to mention the fact that we have a nice uptrend line just below there, so it’s only a matter of time before value hunters would come out. The US dollar has been selling off, as the bond markets have been hit as of late. I believe that if we can break above the top of the range for the previous week, the market should continue to go much higher, and given enough time I think that’s exactly what happens. That doesn’t mean that happens this week, so if you are a longer-term trader, you should probably jump in slowly, and add to your position as we make fresh, new highs. Otherwise, if we were to break down below the 1.21 handle, I think the market will go looking towards the 1.20 level.

EUR USD Forecast Video 19.02.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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