Good day forex traders and koalas.
Welcome to another of our EUR/USD forecast by yours truly, The Forex Koala!
In the previous EUR/USD forecast we noted that the currency pair had a bullish correction. Having said so the target of 1.3100 remained as the EUR/USD did not have a hold on 1.3320 yet. Apprehension was swamping the markets due to the Italian elections.
Looking at the EUR/USD daily chart above we noted that the target of 1.3100 was hit! I love it when my charts work 🙂 After which I mentioned in our forex forum that the 1.3100 region might be a support and it was indeed so. As the bullish correction continues, watch out for the resistance of 1.3150. If that fails, we may be heading back to the 1.3320 region.
The outcome of the Italian elections probably caused negative sentiments as investors were worried about the fate of the current Italian austerity policies. There is fear that the new government may do away with the policies and hence causing a plunge back to budget deficit woes.
Having said so, the president of the ECB was reported to have made comments supportive of monetary stimulus and that probably brought some relief for now as observed in the chart.