Good day forex traders and readers.
How is your forex trading? I hope everyone is making money! Do remember to always have proper money management.
In the previous EUR/USD forecast we noted that the currency pair did indeed achieve the bullish target of 1.14. The current price action was in the region of the middle bollinger band and hence we had to be mindful of any effect on the currency pair.
Looking at the EUR/USD weekly chart above we note that the currency pair did not manage to clear the middle bollinger band. It had since turned bearish and dipped below 1.1.
The 1.1 region is a significant support and resistance area and hence close monitoring is needed. Dropping to shorter timeframes will likely aid in the identification of the immediate price action.
The volatility in the China market has increased significantly and analysts believe that it is spreading to other emerging economies. An increased in apprehension is noted and this can be seen with the tight ranges of the EUR/USD.
Over in the euro zone, the continued lack of a binding solution to the Greek crisis further dampens the sentiment of traders.
Next week brings important economic events like the European Central Bank minimum bid rate and US Non-Farm Payroll. This will no doubt increase the uncertainty of the situation and hence prudence is crucial.
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