Technical view of EUR/USD for 2018

There are many unknown factors to consider when estimating EUR / USD. The central banks responsible for the two currencies often act more cautiously than traders want, and sometimes they also offer full surprises. For the time being, the Fed is expected to continue with a gradual rise in interest rates, but the monthly chart tells another story.

As can be seen, a bullish flag has been formed, which may suggest what the movement will be in the new year. If the top of the flag is pierced (which has almost happened), the market is likely to continue to rise. The goal of activating the formation is $ 1.32, and looking at the overall picture, these levels do not seem impossible. For the time being, it is not known what would cause such a movement, but when broken at level 1.21, there is a very good chance that bulls will take full control.

Zone 1.15 offers quite stable support for the moment, so the technical picture looks long, and with a break of $ 1.21, buyers will start adding to their positions. The "buy the dip" strategy remains in place here.

Jr Trader Alexander Kumanov

Read more:

• NZD/JPY – Short with the main movement after a price action signal
• Jeffrey Gundlach: “USD’s next move is going to be down”
• Here’s a cable forecast for $1.40 till end of 2020
• NZD to 0.59 at end of Q1 2020
• Support for risky currencies as trade war hopes grow