Good day forex trading koalas!
It is time to take a look at our favourite currency pair.
In the previous EUR/USD forecast we noted that a consolidation may be taking place and it was important to note that in the grand scheme of things, short term ranging is normal and shouldn’t catch one by surprise.
Looking at the EUR/USD weekly chart above, we observe a continued edging of the price to the upside. 1.18 is a major region of support and resistance.
With reference to the bollinger bands, the middle band of 1.2 is a major target for any long term bullish momentum. Prior to a breach of that, a sustained bullish push is not likely.
The head and shoulders formation remains in play and it would be interesting to see if it continues developing. Should that happen, we are looking at a move towards 1.1.
I wanted to take a quick reference at the US housing situation which offers an estimation of the economy’s health. Looking at the chart above, we see a climbing trend. This suggests that the US Federal Fund rate will probably continue it’s ascent and stimulate bullish pressure.
With the recent trade wars going on between US, China and Russia, price volatility may emerge and hence to practice proper money management.