Good day forex traders.
Welcome to our weekly review of the EUR/USD. Hope you did great for the week.
In the previous EUR/USD forecast we noted that an attempt for the 1.16 region was made. The currency pair ended the week right below the middle bollinger band. Sentiments were mixed as regional situations developed.
Looking at the EUR/USD weekly chart above we noted that the currency pair was bearish. It was rejected by the middle bollinger band and closed below 1.14.
We mentioned last week and will do so again. Bollinger bands remain useful in the course of our analysis. The bands often exert influence on the price action in the vicinity.
Bearish pressure will likely attempt to dive towards 1.12. The lower bollinger band will probably provide additional support. Upside momentum will face 1.14, the middle bollinger band and 1.16.
European Central Bank Possibly Slowing
A number of analysts commented that the ECB may slow down it’s pace of tightening. Uncertainty from events such as Brexit and the French Protests calls for caution. This may dampen sentiments as investors are looking forward to interest rate hikes beyond the stoppage of quantitative easing.
The US Boat Rocks
With the partial government shutdown still in effect and exerting drag on the economy, apprehension is developing. Political stability is crucial for investors’ confidence. There is talk that US equities are losing their steam. This adds to the risk of exacerbating the situation.
The Week Ahead
The European Central Bank press conference on it’s policy and interest rate is due in the later part of the week. Members should log on to their dashboards for updates. Any unexpected development may create a forex spike. Proper money management is critical.