Good day forex traders,
Welcome to another forecast of the popular EUR/USD.
In the previous EUR/USD forecast we noted that the currency pair had been on a bearish trend and there was no indication of an end.
Looking at the EUR/USD weekly chart above, we can see the current consolidation for the past couple of weeks.
Paying attention to the areas circled in yellow, I wonder if we are seeing a head and shoulders technical formation. If indeed so, we may see a continuation of the bearish trend.
The US Federal Reserve hiked the interest rate as the US economy continues to show signs of strength. Across the Atlantic, investors are mostly expecting the European Central Bank to unwind the existing quantitative easing measures. After all it has been a decade since 2008.
As the price of gold and oil edges to the upside, the US may face weakening pressure from a basis of correlation.
Do trade safely especially during consolidation as the whipsaw may wipe off trades on both sides.