Good day forex traders.
Welcome to the weekly review of the popular EUR/USD currency pair.
We have noted in recent weeks the consolidation of the currency pair. The upper and lower limits are 1.26 and 1.22 respectively.
Looking at the EUR/USD weekly chart above, we note that the consolidation remains. 1.24 is likely a region of strong influence and the currency pair may pivot around this line.
We last visited this region in 2014. This reminds me of one of the fundamentals of trading. That is to only trade with money you can afford to lose. If you are caught in a long position, well your day has arrived . . after 4 years! Haha having said so, many would have probably already took their losses and repositioned.
Oil prices are edging higher and this may provide a foundation for economic activities. This in turn may spur risk taking sentiments resulting in the demand for riskier assets. If indeed, a side effect of this would likely be the euro climbing higher versus the US dollar.
The S&P500 is choppy recently but nothing suggests an end of the bullish run.