EUR/USD Price Forecast March 6, 2018, Technical Analysis
The EUR/USD pair has been very choppy during Monday trading, as we continue to press against the vital 1.2350 level above. If we can break that level, the market will be free to go much higher. I think that the market will continue to be very choppy due to the uncertainty coming out of the hung Parliament in Italy, so keep in mind that headlines could cause some issues.
The EUR/USD pair has been very choppy during Monday trading, as traders trying to understand where Italy is going to go from here. The fact that we have a hung Parliament probably favors those who want the status quo, but until we get some type of resolution to the parliamentary make up, it’ll be interesting to see what headlines do to this pair. It is because of this that traders may step on the sidelines and wait for a bit of certainty. However, if we were to break above the recent high on Friday, I think the market would probably go towards the 1.25 level above, which has been significant resistance. A break above that level frees the market to go much higher and reach towards my longer-term target of 1.32 above.
In the meantime, I believe that there is massive support at the 1.20 level, and perhaps even lower than that. I recognize that the bottom of the uptrend is probably closer to the 1.21 handle underneath, which was the scene of a massive breakout. We also have an uptrend line in that general vicinity as well, so don’t be surprised at all if we drift to that level only to find massive support. I think that the longer-term outlook for this market is for it to go higher, but it isn’t necessarily going to do it in one shot.