Good day forex traders and readers.
Welcome to another EUR/USD forecast and I hope everyone is trading well. Apologies for the slower updates recently. I am still needed at the hospital most of the time but I am squeezing as much time as possible for you my dear readers!
In the recent week we noted on a number of sovereign complications and the bearish pressure for the EUR/USD. It will be crucial to understand why are the markets reacting in such a manner.
Looking at the EUR/USD weekly chart above we note that the currency pair is experiencing bearish pressure for the new week and it is now at a critical support level. Should the currency pair manage to break below, we may see an extended bearish push for 1.3350.
Any bullish attempt to recover may see 1.3650. It is important to note that the middle bollinger band lies in that sector and hence a strong resistance may be present.
The recent market sentiments are likely to involve risk aversion as we note the various sovereign complications happening. The Ukraine crisis is nowhere near an end as the civilian air crash further implicate matters. Problems are also brewing in the Middle East with the Syrian conflict and Israel crisis. The UN is calling for an immediate ceasefire due to increasing civilian casualties.
Typical signs of risk aversion are noted such as the increased demand for gold and safe haven currencies. Caution is advised as such sentiments may be volatile in nature.
This week brings a number of important economic releases from both the US and Euro Zone. Do ensure proper money management in anticipation for any unexpected developments.