Good day forex traders and readers.
Welcome to our weekly forecast review of the popular currency pair the EUR/USD. Did you have a good week of forex trading?
In the previous EUR/USD forecast we noted that the currency pair did indeed corrected and took out the bullish target of 1.24. It was not possible to ascertain if the bearish momentum had ended. 1.24 was the immediate support and 1.248 was the immediate resistance.
Looking at the EUR/USD weekly chart above we note that the currency pair had a correction. It is now just below the immediate resistance 1.2480.
Should the EUR/USD goes up beyond 1.248 / 1.25 , we may expect a bullish target of 1.26. Any bearish momentum needs to take over 1.24 before heading to an extended target of 1.22.
An important point to note is that the bearish momentum seems to be receiving more push back now as it is not as intensive as before.
While it remains that the fundamentals of the U.S. and the Euro Zone favor the U.S. economy, the crash of the oil price is adding a new dimension to the consideration. A growing number of experts are expecting the dip in oil prices to affect the global economies thus dampening the climbing US economy. This may have produced the bullish correction.
With this in mind, we also have to note that it will also have an effect on the euro area. While some may argue that the low oil price is good for economies, one have to understand that the strained oil industry will lead to further reaching repercussions, both sentiments and fundamentals.
There is nothing to suggest a reversal but we may see some consolidation. Proper money management as always is a must.
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