Which direction will EUR take against USD in 2018

The euro has reached a 20-year crossroads.

This week, the euro rose against the US dollar to last year's high, the 1.2020-1.2080 area. This area is actually the middle of a major zone - the 1.19-1.23 price level, which has served as the "equator" for EUR/USD movement over the last 20 years. During this period, the price rejected from it 7 times and broke through it only 2 times.

What comes next.

So, statistically, with higher probability, we could expect another rejection downward, with the first target at the lows of the last 3 years, the 1.06-1.03 area. This could be supported by the fact that the chart shows a downward trend over the last 10 years. The scenario of continued euro appreciation against the US dollar assumes that EURO should be very prepared for such a move, because to achieve it, it has to pass two strong resistance zones: the 20-year level - 1.19-1.23 and the trend line - the 1.24-1.28 area.