Good day forex traders.
Welcome to our weekly review of the EUR/USD currency pair.
In the previous EUR/USD forecast we noted that the currency pair remained in a consolidation phase as the market took stock of the current situation. The head and shoulders technical pattern remained a possibility.
Looking at the EUR/USD weekly chart above we note that the currency pair continues to range within 1.16 to 1.18.
An interesting observation would be that the price action seems to be getting narrow and a technical squeeze may be upcoming.
The current world economic status remains uncertain as the trade war between US and China continues to unfold. The US Federal Reserve appears to be continuing it’s plan for interest rate hikes while the European Central Bank is also tightening the Euro Zone market by dialing back on quantitative easing measures.
In view of the current economical and political climate, we need to monitor closely and be on the look out for unexpected momentum caused by risk aversion.