Good day forex traders and readers.
Welcome to another of our popular EUR/USD forecast. This currency pair remains the most traded and many of our readers are in positions.
In the previous EUR/USD forecast we noted that the currency pair recovered from a forex gap and was at 1.11. With the uncertainty of the Greek crisis, we had to consider both sides of the trade. Resistance levels were 1.12 and 1.14 while a likely strong support was at 1.08.
We could see from the chart that the EUR/USD was in a range of sorts and perhaps with a Greek resolution we might see some direction.
Looking at the EUR/USD weekly chart above we note that the currency pair is yet again around the region of 1.11. This region continues to function as a pivot of sorts.
In view of the uncertainty still surrounding the Greek debt crisis, both sides of the trade remains a possibility. I would still look out for the resistance of 1.12 and 1.14 while anticipating possible support at 1.1 and 1.08. An interesting point to note is that 1.1 is shaping up to be quite a strong support.
As Greece hangs by a thread from complete financial breakdown, the risk aversion in the market is high. Traders were reported to be flooding into safe haven assets as apprehension continued.
In the Far East as the China equities correct, many analysts fear of a contagion spread across the globe. The Chinese government took many measures to stop the sell off and close monitoring is required to see if the situation worsens.
We have many major economic releases such as U.S. Retail sales and the European Central Bank minimum bid rate due in the upcoming week. I am currently staying on the slide lines due to the uncertainty. Do be very careful.
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