Good day forex traders and readers.
Welcome to a daily forecast review of the EUR/USD. I hope you are having a great week so far making money in forex.
In the previous review of the EUR/USD we note that the currency pair was bullish and 1.38 may be an extended target. With the government shutdown over and the solution of the US debt ceiling crisis found, the markets were generally relieved.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair has achieved the 1.38 extended bullish target. 🙂 I love it when our charts work!
Do be cautious for now as 1.38 is often a strong support and resistance region. A breach may open up 1.4 which is predicted by a number of currency analysts. On the other hand, any bearish correction may see a test of the immediate support of 1.3660.
The US dollar retains a sell bias as investors remain concerned about the impact of the government shutdown. Economic growth and employment were probably affected.
In the meanwhile, the European Central Bank president mentioned that the interest rate of the euro zone will remain at the current level or even lower.
Do be careful as the trading week approaches the weekend. Unexpected moves due to profit taking may occur.