Good day forex traders.
Welcome to our weekly review of the EUR/USD currency pair. Did you make money last week? I sure hope you did!
In the previous forecast we noted that the currency pair was testing the the resistance of 1.1. While the US Non-Farm Payroll turned out better than expected, optimism surrounding the French election brought positive sentiments for the Euro Zone too.
Looking at the weekly chart of the EUR/USD, we noted that the 1.1 resistance is still intact. The candles appear to be forming a loose ascending channel with the current level as the upper trend line.
With the action above the middle bollinger line, a bullish bias will likely be the choice of many. As mentioned, 1.1 needs to be taken over before a push for 1.12.
There were a number of important figures released during the week. In the US, retail sales are up. Having said so, reports mentioned of online purchases being the major contributor. While spending is an indication of a good economic health, in this particular situation a fall out may happen among the traditional retailers.
Across the Atlantic, sentiments continue to improve. In Germany, BBC reports that the economic growth is speeding up. ”
Germany’s economy grew strongly in the first three months of this year, driven by investment and consumption, official figures show.
First-quarter GDP growth was 0.6%, faster than the October-to December 2016 figure of 0.4%.
Household and state spending were strong, while firms invested money in construction and equipment, said German statistics authority Destatis.
Foreign trade also helped, as exports increased faster than imports.
Germany has the largest economy in the eurozone and its performance is in marked contrast to that of other big countries, such as Italy and France. ”
Remember I mentioned before that one of the main challenges that the euro zone faces would be the diversity of economies. It was reported that the European Commission felt that Germany’s current account surplus was too big. The opinion was of which that a reduction would be beneficial to the euro zone as a whole.
Trade safely in the upcoming week. Even a pip gained is a profit. Proper money management is a must.