Good day forex traders.
Wanted to provide a short update regarding the EUR/USD. In the previous forecast we noted the technical triangle squeeze breakout sent the currency pair up towards 1.26. Masoud also noted a bullish channel in effect and suggested buying on floors.
Looking at the EUR/USD 4 hourly chart above, we noted a bullish move towards the extended target of 1.26 again. Do note that the 1.26 region may pose as a strong resistance.
On the fundamental aspect, a number of economic reports presented a beak outlook. It was reported that the US consumer confidence dropped as concerns grew regarding unemployment and the economic outlook. Across the Atlantic, it was reported that Spain is falling into a deeper recession due to the impact of austerity measures on the Spanish economy. Spain is the Euro Zone’s third largest economy and hence any complication will probably bring about far reaching consequences. Equities worldwide are mostly red.