Good day forex traders and readers.
Welcome to another EUR/USD forecast by The Forex Koala.
In the previous EUR/USD review we noted some bearish pressure. Should the bulls make a return, the immediate resistance should be the top of the bollinger bands.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair experienced more volatility and the top of the bollinger bands did serve as a resistance. I expect possible continued volatility and hence caution is advised as the currency pair attempts to find its bearings.
As the Euro Zone continues to face dampened economic outlooks, concessions are being made with regards to austerity. We may be seeing increased optimism that such easing of austerity may spur economic growth. Having said so, it is vital that we understand that the budget deficits still remain a problem to be fully uprooted.