Good day traders.
Welcome to our weekly review of the EUR/USD. With all the apprehension surrounding the Greek crisis , I hope everyone traded safely!
In the previous EUR/USD forecast we noted that the currency pair was again around the region of 1.11. This region continued to function as a pivot of sorts. Due to the uncertainty that surrounded the Greek debt crisis, both sides of the trade remained a possibility. The currency pair might dip to 1.08.
Looking at the EUR/USD weekly chart above we note that the currency pair was bearish for the week. It is now near the extended support target of 1.08. Our forecast was correct. As mentioned 1.08 is a bearish target.
It is important to note that the bottom bollinger band which may serve as an immediate support lies at 1.08 too. Should it fail, we may be looking at 1.06 and 1.05.
Bullish correction will likely seek 1.1 followed by 1.11.
Over in the U.S. , the US Federal Reserve indicated that the interest rate hike will happen by the end of the year. This brought about increased demand for the U.S. Dollar. Furthermore with the recent risk aversion, safe haven assets like the U.S. Dollar are receiving more demand.
With the Greek crisis achieving a resolution for now, a number of analysts are seeing it as a cause for further euro weakness. This is probably inevitable due to the European Union consisting of countries with various degrees of economic situations. Troubled economies like Greece’s will continue to cause a drag on the euro.
Do continue to monitor the sentiments of the market.
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