Good day forex traders.
Welcome to the weekly review of the popular EUR/USD.
In the previous EUR/USD forecast we noted that the 1.16 region might progress into a pivot zone where the currency pair would consolidate further. With regards to the US Non-Farm Payroll, we should be paying attention to the growth of wages too as it contributes directly to spending. This is important for the economy.
Looking at the EUR/USD weekly chart above, we note that the currency pair appears to be consolidating around 1.16. In a grand scale of things, the head and shoulders technical pattern remains a possibility. Should it happen, we may be looking at a bearish effort to reach the region of 1.05.
Any bullish recovery will need to face off with the strong resistance at 1.16 and the middle bollinger band at around 1.17.
The US Non-Farm Payroll was better than expected. It came in higher at 201k instead of the forecasted 191k. Wages increased too hitting a 9 years high of a 2.9% annual increase rate. Positive sentiments probably drove the value of the US dollar up. With the strong figures seen in this US Non-Farm Payroll, many are speculating that the US Federal Reserve will be rising the interest in the upcoming opportunity.
Over across the Atlantic as Greece emerged from the bailout program, many are hopeful of an era of growth for the euro zone. The path ahead remains uncertain as Brexit unfolds. The US trade wars also presents an area of uncertainty.
We have the European Central Bank interest rate event for the coming week. Much data is due for the US too such as the Producer Price Index. Needless to say, everyone should practice proper money management.