Good day forex traders.
Welcome to another update on the EUR/USD currency pair.
In the previous EUR/USD forecast we do note a bearish drift lower. The initial surge of bullish demand seems to have retreated due to the subsequent disappointing economic releases.
Solution : ProRealTime
Looking at the EUR/USD 4 hourly chart above, we do note that the EUR/USD is still below the 1.3 line. The longer it stays below, the higher risk of a bearish return. Immediate support is around 1.29 for now. The chart above shows an obvious short term bearish trend.
Today featured a bonds auction by Spain and Italy and the outcome was mixed. Investors continue to be uncertain about the Euro Zone’s future. It was reported that Spain is holding back on any assistance request due to the fear of bailout terms.
A news of relief however came from the US where confidence rose higher than expected. This probably helped to ease some fears and prevented a drop for the EUR/USD.
Continue to monitor economic data so as to gauge response.