Good day forex traders and readers.
How was your trading performance for the week? Hope you made many pips.
In the previous EUR/USD forecast we noted that currency pair reacted as expected. It failed to breach the strong resistance of 1.14 and was testing the region of 1.12 which was the middle bollinger band. Should the currency pair gain bullish momentum, the next resistance would likely be 1.14 again. We would need a clear breach of this region before expecting any further bullish momentum.
Looking at the EUR/USD weekly chart above we note that the currency pair tested the 1.14 resistance again. It did not manage to breach the resistance but closed the week higher than the previous week.
From a technical point of view, the EUR/USD is showing bullish indications but remains capped by 1.14. As mentioned previously, a clear breach is required before we can consider extended targets like 1.16.
Should any bearish correction happen, the middle bollinger band may serve as an immediate support at 1.12. An extended bearish target will likely be 1.1.
It was reported that US Federal Reserve officials at a June 16-17 policy meeting reduced their estimate for the federal funds rate for the end of 2016 to 1.625 percent. In March the estimate was 1.875 percent. The outlook for 2017 was lowered too. This took a number of traders by surprise as it is rather dovish. Interest rate hike expectations dropped because of this and likewise a drag on the U.S. Dollar was observed.
Over in the Euro Zone, tension and apprehension regarding the Greek crisis mounts as various concerned parties rush to find a solution before the end of the month. We need to pay close attention to any developments due to the potential impact to the region. Euro ministers are expected to meet on Monday.
Many economic events relating to both are due this week and hence proper money management is crucial in view of any possible unexpected events.
We Need Your Support!
As you know, I do not have any budget and I have never charged you for all the work. I need your support to get the word out on the website so that more people will visit and I can continue writing for you. Please share the website in facebook, forums, websites and communities. Thank you.