Good day forex traders.
Welcome to our EUR/USD forecast. I hope you are having a great week of trading so far. It is mid week!
In our previous review we noted that the EUR/USD was facing a resistance and close observation should be done. On the fundamental front, economic conditions continue to favor a positive sentiment and hence risk taking may increase.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair is on a bullish stance this week. It is currently facing an immediate resistance of 1.3320. Should this line fails, we might be looking at 1.3380 next.
A bearish return might see us heading back down to 1.3260. This line is a historical support and is also the middle of the bollinger bands.
Bond yields in the US have risen as the economic condition continues to show promise. The S&P rating agency upgraded the US to a stable rating thus increasing the optimism. Over across the Atlantic, there reports that believe in the calm of the Euro Zone now as the immediate threat of sovereign default and Euro Zone break up has subsided. A report today also show that the April industrial output for the Euro Zone increased unexpectedly.
As sentiments continue to improve, we will probably see the higher yielding assets such as the euro receive demand.