Good day forex traders.
Welcome to another review of the popular currency pair. I hope you had a great week of forex trading. There are pips aplenty for all.
In our previous EUR/USD review we noted of a bullish momentum. Resistances crumbled as the currency pair climbed.
Looking at the EUR/USD weekly chart above we note that the currency pair is at the tip of the resistance region.
If the bullish momentum continues, we may expect a possible long term bull run to the 1.25 region. 1.2 will probably be a significant resistance.
While the bearish pressure is nowhere to be seen these days, always expect the unexpected for forex. A return will see a smack on the EUR/USD right down to 1.14.
From a fundamental point of view, I will like to draw your attention to something I said years back.
After the financial crisis of 2008, the US took the worst but gradually recovered. I mentioned that the Euro Zone will come next and yes it did. Now we are likely seeing an improvement to the Euro Zone situation. Is Asia next? Only time will tell.
BBC reports ” The eurozone notched up growth of 0.6% in the second quarter of the year, official Eurostat figures showed.
The figure puts annual growth in the 19-country bloc at 2.1% since a year ago.
First-quarter growth was revised down slightly from 0.6% to 0.5%.
Other figures released on Monday showed unemployment in the zone was at its lowest since 2009, building on the picture of improving economic health across the area.
On Friday, figures showed Spain’s economy, one of the worst-hit by the financial crisis, grew by 0.9% in the second quarter, suggesting the country’s economy had finally grown back to the size it was before 2008.
The International Monetary Fund last week said the outlook for several eurozone economies was brighter than initially thought, with countries including France, Germany, Italy and Spain seeing growth forecasts revised up.
The European Central Bank is planning to tighten up monetary policy after years of pumping up activity through low interest rates and bond-buying. ”
Should the Euro Zone recovery pick up momentum, it is likely that we will see an increase in demand for the Euro currency.
Trade safely and remember your proper money management.