Friday, January 12, 2018

The Next Target For EUR/USD Is The Zone Around 1.2270 – 1.2320

All circumstances point out that the pair will continue moving north. EUR/USD broke out above the local high at 1.20924 and above 1.2100.

The bullish bar from last month was very telling and was yet another proof (for me, at least)  that the signals of the Japanese candles should be not only understood but heard as well, as they are rarely wrong.

On the W1 time frame the resistance is at 1.2100 but it is obvious that with the opening of the London session the bulls took over for a breakout above that level and are now continuing the rally.
As this scenario develops there is little left but to mark the next strong resistance level, which is in the zone around 1.2270 – 1.2320. In the past this zone has been a very strong support for the EUR and I think it is now obvious that the bulls will attempt to test it in order to return the currency to its old levels.