Good day forex traders and readers.
Welcome to another EUR/USD forecast. How is your opening day for the week?
In the previous EUR/USD forecast we noted that the currency pair dipped sharply for the week. 1.0780 was achieved and the EUR/USD stretched further. The bottom bollinger band would likely be an extended bearish target at 1.0330. Any bullish recovery would likely test 1.0780 followed by 1.1.
Looking at the EUR/USD weekly chart above we note that the currency pair was bullish for the week. 1.078 was tested as expected but the EUR/USD failed to breach it.
We are noting a bearish stance for now and the support lies at 1.0550. Further bearish pressure will target 1.0330. Should the EUR/USD attempt to recover, 1.078 will probably offer resistance followed by 1.1.
The fundamental situation is largely unchanged although the apprehension over Greece is increasing. The European Central Bank president had commented that shorting the euro currency is pointless. He remained rooted to the fact that they want Greece to succeed. While these comments came direct, the market seems to be ignoring it. The euro continues to weaken for the week.
Reports are also suggesting that the yields on Greece government 10 year bonds are increasing and it may be an indication of choppy conditions.
Do continue to pay attention to the economic data releases.