Good day forex traders and koalas !
Welcome to another update on our favorite currency pair the EUR/USD. I hope everyone is doing fine so far as the week crosses the mid point. Forex trading is never an easy feat!
In the previous EUR/USD forecast I mentioned of a fundamental view by some experts that the Euro currency strength might not be due to economic factors but rather perhaps political. If indeed so, should adverse economic data surface, a substantial drop in value might be seen.
Looking at the EUR/USD chart above, we note a tight trading range for the week. The price action remains slightly above the consolidation region of 1.3320 for now. We can see a weak head and shoulders chart pattern and if indeed so, we may see 1.3100.
Woes seem set to return to the Euro Zone as fresh strikes were held in Greece in protest over the austerity measures. In a country where unemployment has hit a high of more than 26%, such disunity may further implicate the economic situation. Talks are due in days regarding the next bailout installment and any speculation of a adverse condition such as a Greek departure from the Euro Zone may cause risk aversion.