Good day forex traders and readers.
Welcome to our weekly review of the EUR/USD. The currency pair had been trending recently and I hope you made some profit!
In the previous EUR/USD forecast we noted that the currency pair remained bearish. It was interesting to note that the EUR/USD continued to be well bid towards 1.3200+. The 1.34 support and resistance level continued to function as a critical pivot and it was important that we continued to observe this region for insights to the currency trend.
Looking at the EUR/USD weekly chart above we note that the currency pair had distanced itself from the 1.34 region. The bidders of the 1.32 region seem to be weaken as the EUR/USD approaches 1.32.
There is a possibility that technical traders may want to bring upon a test of 1.32. This region is usually a strong support and resistance line and hence caution is advised.
During the week, ECB president Mario Draghi said that inflation expectations have deteriorated across the euro area. He also indicated that policy makers are ready to add more monetary stimulus. This probably brought about concerns regarding the single currency’s value.
On the other hand, the US Federal Reserve officials generally painted a challenging but optimistic situation for the US economy. As the American economic powerhouse gains momentum, it increasingly appears to be leaving the euro zone behind.
Let us be prudent and monitor closely regarding inflation in the Euro Zone.
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