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EUR/USD Price forecast for the week of November 20, 2017, Technical Analysis

Christopher Lewis
Updated

The EUR/USD pair rallied significantly during the week, slicing through the 1.17 level, something that is very impressive, as the 1.17 level was the neckline of a massive head and shoulders pattern on the daily charts. The fact that we turned around after breaking below it suggests to me that we are going to continue to see a lot of bullish pressure, and we could rally towards the top of a head and shoulders pattern, near the 1.21 handle. We did give back quite a bit of the gains late in the week though, so that tells me that we are more than likely going to see a short pullback first, to build up the momentum necessary. If we were to break down below the candle from the previous week, the market will more than likely fall towards the 1.13 handle, but quite frankly I believe that it’s more likely that we go higher due to problems in the U.S. Congress trying to form some type of tax bill. If that remains the case, the pair should continue to go higher.

If they do sign that bill, we could turn right back around, and drop significantly. The noise will be considerable, but until proven otherwise, I should believe that the market will continue to find appetite for the upside. If we can finally break above the 1.21 handle, the market should continue to go much higher, perhaps reaching towards the 1.25 level. The 1.13 level underneath is the 50% Fibonacci retracement level, so if we do break down I would expect the downtrend to and right there. Overall, it’s likely that the market continues to find plenty of reason to be choppy. It will be difficult, but the recent pressure is most certainly favoring higher pricing.

EUR USD Forecast Video 20.11.17

This article was originally posted on FX Empire

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