Good day forex traders and readers.
Welcome to another weekly review of the EUR/USD. As tensions run high with regards to Greece, how is your forex trading so far?
In the previous EUR/USD forecast we noted that the currency pair tested the 1.14 resistance and failed to gain a foothold. It eased back to to the 1.11 support and resistance region as mentioned previously.
The technical situation was tricky as the currency pair might be consolidating. Bullish momentum would need to take note of possible resistance at the middle bollinger band at 1.12 and the major support and resistance region at 1.14. Bearish momentum would likely see support at 1.10 and later at the supportive region of 1.08.
Looking at the EUR/USD weekly chart above we note that the currency pair reacted as expected. Just like clockwork, the EUR/USD failed to breach the strong resistance of 1.14 and is now testing the region of 1.12 which is the middle bollinger band.
Should the currency pair gain bullish momentum, the next resistance will likely be 1.14. We need a clear breach of this region before expecting any further bullish momentum.
A bearish return will likely see the EUR/USD pushing down towards 1.1 and the support of 1.08.
Last week we explored the increasing optimism of the U.S. economy. The employment situation has improved a lot since the 2008 crisis. The next phase of the U.S. economy is likely to be the increase of interest rates by the US Federal Reserve. This will create possible demand of the U.S. Dollar and increase its value.
Across the Atlantic, we also note improving economic conditions across a number of the euro zone countries. Having said so, it is important to note that a few of the member countries like Greece remain critically challenged in terms of economic strength which inevitably dampens the euro zone as a whole.
Pay close attention to the upcoming week’s economic events. We have important releases like the U.S. Federal Funds Rate and German ZEW Economic Sentiment.
We Need Your Support!
As you know, I do not have any budget and I have never charged you for all the work. I need your support to get the word out on the website so that more people will visit and I can continue writing for you. Please share the website in facebook, forums, websites and communities. Thank you.