Good day forex traders.
How was your week? I hope you made some pips from forex trading. Do remember that it is never about getting rich overnight but rather a slow and steady approach!
In the previous EUR/USD forecast we noted that the currency pair was bullish for the week. The currency pair was near the resistance of 1.14 and we noted that the bollinger band was narrowing.
Looking at the EUR/USD weekly chart above we note that the currency pair was almost a doji. It is now settled in between our middle and top bollinger band.
As I mentioned in the previous review that we may be in a consolidation phase, this price action is not unexpected. We need to monitor the resistance region of 1.14. Any bullish reversal will need to breach it first.
In the meanwhile, the middle bollinger band may function as an immediate support. It coincides with the support region of 1.12.
Do be careful if the bollinger bands continue to narrow as that may indicate a possible breakout.
The decision by the US Federal Reserve to hold rates this week was a disappointment for many investors. Officials warned of a concern regarding China slowing growth and the overall global market sentiment. A few analysts mentioned that they are apprehensive as they speculated that the US Federal Reserve may have seen some negative outlook that they did not. While a number of the officials believed that rates will still be hiked this year, a number of traders are already speculating of a 2016 hike instead.
Over in the euro zone, the fundamental situation remains the same as the divide of performance between the top economies like Germany and troubled markets like Greece continues to challenge the region.
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