Good day forex traders.
It is almost the end of the trading week and i hope you are green with pips.
In the previous EUR/USD forecast we noted that the currency pair lies at a support and resistance region. A bearish drop may result in the extended bearish target of 1.245 +/-. The Euro Zone unemployment rate crept up and the IMF lowered the growth projection of US.
Solution : ProRealTime
The EUR/USD did dip and hit the bearish target of 1.245. I LOVE IT WHEN MY ANALYSIS WORKS!
The currency pair has since continued it’s bearish momentum and is now consolidating. We may see some ranging in the 1.24-1.245 region unless further bearish pressure arrives. The sharp dip was probably due to a sell off as a result of risk aversion. The European Central Bank ECB lowered interest rates to 0.75% and will pay nothing for overnight deposits. This is done in a bid to stimulate the economy. The Bank of England also restarted quantitative easing to spur the economy.
With these easing actions, the market is concerned that the Euro Zone budget deficit crisis is getting out of hand. Do be reminded that the US Non-Farm Payroll will be due tomorrow and any adverse data may further escalate the situation.
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