Good day forex traders.
The new trading week will be here soon and i hope everyone is ready to make some pips!
In the previous EUR/USD forecast we noted that a bearish slide brought the currency pair to the region of 1.27 which was the immediate support.
Solution : ProRealTime
Looking at the EUR/USD chart above we note that the currency pair failed to punch through the 1.27 line. It became bullish and is currently testing the strong resistance of 1.3. As seen above with regardless to the dotted red line, there is a possibility of it hopping right back to a bullish channel. Having said so, there are many fundamental considerations now and hence expected the unexpected. Always manage your exposure.
Sentiments improved over the week as optimism started to increase due to the better than expected economic data from the various economies such as the US, Euro Zone and China. For example, the better than expected German data brought relief that Germany probably remains an economic powerhouse to steer the Euro Zone out of the budget deficit crisis.
Discussions are ongoing as the various Euro Zone nations and the IMF work to unlock further bailout funds for Greece. It was reported that a meeting over the weekend brought no conclusion. I think we need to monitor this carefully. Any unexpected development may bring about unexpected currency movement. Forex gaps, spikes, etc. The only thing we can do is to prepare for the unexpected. Limit your risk exposure to a manageable size and never let emotions cloud your decisions.