Good day forex traders and readers.

Welcome to our weekly review of the popular currency pair the EUR/USD. How was your trading this week? I hope you made money.

In the previous EUR/USD forecast we noted that the currency pair was challenged by a strong support region of 1.1550. However we noted that the EUR/USD did dip below this level. Any bearish momentum was likely to target 1.14.

Technical Analysis

Looking at the EUR/USD weekly chart above we note that the currency pair has mainly been on a steady bearish momentum. I am glad that many of our readers made a significant amount of profits. One of them is up 300% ! All I can say is that I am humbled by the thank you emails but the success is also yours. We can only explain the market. You make the call 🙂 So again to those readers .. Good call !

We noted that the EUR/USD achieved our bearish target of 1.14 and is now testing 1.12. Needless to say that if this support fails, 1.1 is definitely up for targeting.

Any correction will likely attempt to push 1.14 again. A number of folks are calling for a consolidation. Observing the smaller timeframes will be critical this coming week.

Fundamental Analysis

Last Thursday the European Central Bank announced the launch of a quantitative easing program worth more than 1 trillion USD. This move while largely expected, gave a confirm of sorts to the market which took the euro further down the path of devaluation. Furthermore most analysts agree that this program is a large one and hence likely to affect the euro significantly.

From a fundamental point of view, the U.S. Dollar is likely to be favored over the euro currency for now as it is already in a tightening phrase of the economic cycle versus the euro zone which just implemented quantitative easing.

Be careful of any unexpected developments due to the Greek elections and do be aware of the various economic releases such as the German Ifo Business Climate early next week.

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EUR/USD Forecast 26 Jan 15

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