Good day forex koalas and friends!
Welcome to our weekly review of the EUR/USD. I hope your trading was fantastic for the week.
In the previous EUR/USD forecast we noted that 1.16 may function as a pivot. With the US Federal Reserve being on the view that a gradual interest rate pace is appropriate, sentiment towards the US dollar might drop.
Looking at the EUR/USD weekly chart above, we indeed see a massive influence on the price action by the support and resistance line of 1.16.
For any bullish momentum to take hold, the middle bollinger band needs to be breached. As you can see in the week just passed, the upside price action was capped by the middle bollinger band.
Any bearish push will need to overcome the 1.16 line and head towards 1.14. Otherwise it may end up pivoting. For the current situation, it may help to drop down to shorter time frames to assess the price activity.
The US Non-Farm Payroll is due at the end of the week. Traders will be monitoring this closely as a broad gauge of economic health. For the koalas who are new to our website, I often mentioned that employment is only half the equation. It is important also that wages are rising. Increasing wages expand the spending power of the consumers which are then fed back into the economic equation. The situation thus far is such that the increment on wages could be better. Do proper money management as employment figures are often impactful resulting in surges of volatility.