Good day forex traders.
It is the second day of the trading week and i hope everyone is off on a good start. In the previous EUR/USD forecast we noted that the currency pair had a bullish run up to the resistance of 1.28. We had a number of bullish developments too, such as the better than expected German industrial output. This probably increased positive sentiments.
Looking at the EUR/USD 4 hourly chart above, i want to highlight based on the empty white on the left that this bullish move had been fast and furious. While the EUR/USD struggles with the resistance region of 1.28, any adverse developments may send this currency pair down. Having said so if the positive developments continue, a clear breach of 1.28 will open up the extended target of 1.3.
Do trade safely as the announcement of a ruling regarding the constitutionality of the European Stability Mechanism by the German Federal Constitutional Court is due soon.