Good day forex traders.
Welcome to another update of the EUR/USD by The Forex Koala. With the end of the trading week approaching, i hope everyone is green with profits.
In the previous EUR/USD forecast we noted a possible resistance at the region of 1.2600. With the ECB differing with a number of German officials in opinions regarding a solution to the Euro Zone budget deficit crisis, apprehension and risk aversion was noted.
Solution : ProRealTime
Looking at the EUR/USD 4 hourly chart above, we observe a narrow trading range. I loosely plotted two set of support and resistance lines that corresponds to a technical triangle squeeze. Is a breakout due soon?
The outlook of the Euro Zone budget deficit crisis remains depressing as economic indicators do not reflect a positive recovery. It was reported that the unemployment in Germany has risen for the fifth consecutive month. A confidence report has indicated that the confidence towards the euro area has fallen.
US Federal Reserve Chairman Ben Bernanke is due to speak at the Jackson Hole tomorrow and many are speculating of a possible announcement of further stimulus to aid the US economy. This is also a possible reason for the narrow trading due to apprehension.