The US Dollar has gone through rough times last year. I thought that this year the tide was going to turn for the Buck, but it doesn’t seem so far. It’s still early though, we’ll see how the USD reacts when the new FED chairman takes office.

So far, the USD has been shattered to pieces these first couple of weeks of 2018.  Last Friday, EUR/USD broke above 1.21 which has been the high in the last three years. Today, this pair is continuing to push higher and we have broken above 1.22.

I’m not going with the USD this time, not on the smaller timeframes anyway. So, I will be waiting on a retrace lower for this pair and then I will consider opening a buy forex signal.

1.22 already provided support after being broken this morning

The 20 SMA (grey) would be a good place to consider going long from on the hourly forex chart. It comes at around 1.2185 at the moment. But if a retrace is to take place, by the time we get down there the 20 SMA would have reached 1.22.

That is a round number so it would be a good place to open a short term buy signal. Otherwise, the 1.21 would be the place to look for a better trade. It was a decent resistance level  for some time, but it got broken, so it will surely provide some support.