Good day forex traders and readers.
It has been disappointing for a few weeks now for traders who are on shorts for the EUR/USD. A number of my readers have cut their losses while a few continue to hold on. I hope everyone realizes that cutting losses at times may be a prudent decision.
In the previous EUR/USD forecast we noted that the currency pair had been on a steady bearish momentum and hence a consolidation might be possible. Observation of the shorter time frame was recommended to detect signs of a correction.
Looking at the EUR/USD weekly chart above we note that the currency pair has been bullish for the last few weeks. As predicted previously, the bearish momentum halted for the moment while the EUR/USD finds its bearings.
We are looking at a probable immediate range of 1.11 to 1.15. Extended bullish range will likely stretch to 1.16.
The current technical situation remains uncertain. Close monitoring is required and this can be done on the lower time frames.
Recently the fundamental situation has improved for the Euro zone. Germany and the euro zone in general has reported better than expected economic developments. This has lead to better sentiments and hence the increased buy in to the euro currency.
Oil has recovered to above $50 and this probably contributed to sentiments. With regards to the Ukraine crisis, a peace deal has been achieved and all eyes are on the stability of it. If the peace deal holds, the Euro Zone sentiments are likely to further improve. Do pay close attention to the economic developments for the week.
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