Good day everyone.
It is time for another forecast of the popular EUR/USD. How have you been trading? Hope you are making money from forex 🙂
In the previous EUR/USD forecast we noted that the currency pair was a near doji for the week. As mentioned previously, the bullish correction was temporary indeed. Support and resistance region by the numbers would give us 1.11 and 1.08 respectively.
Looking at the EUR/USD weekly chart above we note that the currency pair attempted a bullish maneuver. It was however capped by 1.11 as forecasted. I love it when our support and resistance lines work!
From a longer term view of analysis, the EUR/USD remains in a consolidation phase. We have to monitor the upper limits of 1.12 and the extended bullish target of 1.14. Any return of bearish momentum will likely see support at 1.09 followed by an extended target of 1.08.
The recent inflation data shows that the euro currency inflation rate is still far from the European Central Bank target of just below 2%. The continued risk of deflation together with the dampened sentiment indicates no major changes to the fundamental situation.
Across in the Far East as China continues to grapple with it’s recent market woes, we need to pay close attention for any contagion. Being a major economy of the world, any adverse situation is likely to have an impact across the global financial markets.