Good day forex traders.
Time flies and soon the new trading week will be upon us. Are you ready for a fantastic week of forex trading?
In the previous EUR/USD forecast we noted that the currency pair could go either ways and it was crucial to observe how it reacted at the 1.3 level. The US Non-Farm Payroll brought about a mixed bag of results. The unemployment rate dropped but was reported to be mainly attributed to part time employment.
Solution : ProRealTime
Looking at the EUR/USD chart above we note that the EUR/USD dipped below the 1.3 line soon after opening and that pretty much set the tone for half of the week. It did bounce off the strong support region of 1.28 and had since tested 1.3 again.
We also note that the currency pair is making lower tops as seen from the downwards trend line above.
Once again we need to observe how the currency pair reacts towards the 1.3 level on opening.
Looking at the current fundamental situation with the downgrade of Spain and the request of extension by Greece on the bailout, we can expect that the situation remains fragile. The major economies of the Euro Zone and the US both face their respective challenges. With Asia ( the main global economic growth driver ) slowing down, the situation becomes more complicated.
Once again the machinery of the rumor mill is working overtime and there are talks of a Greece departure from the Euro Zone again. Such sovereign issues are damaging for sentiments and hence caution is advised.
With the IMF meetings over the weekend, we must be prepared for any change of expectations. Next week brings about important economic data such as the US Retail Sales and German ZEW Economic Sentiment.