Good day forex traders and readers.
I hope everyone had a good forex trading week. Remember that forex is about being slow and steady. Proper money management is a must!
In the previous EUR/USD forecast we noted a bearish stance and the support was at 1.0550. Further bearish pressure would target 1.0330 although should the EUR/USD attempted to recover, 1.078 might offer resistance followed by 1.1.
Looking at the EUR/USD weekly chart above we note that the currency pair was bullish for the week although the range was tighter than usual. The extended bullish target of 1.1 is in sight.
Any bearish recovery will likely seek to target 1.078. Having said so, the bottom bollinger band is turning flat and hence we need to monitor closely. This region may become an area of consolidation.
We had some positive economic data for the Euro Zone and hence sentiments were good. The German Business Climate was better than expected. Germany is the Euro Zone biggest economy and hence this was comforting to many traders. Having so said, reports were seen mentioning wide differences regarding the Greece crisis and hence we need to exercise caution.
As mentioned in my AUD/USD forecast earlier, the U.S. economic data releases were disappointing for the week and hence this probably contributed to the dampening sentiment towards the U.S. Dollar.
The U.S. Federal Funds Rate and FOMC statement is due this week and hence do be prepared for forex spikes if there are unexpected developments.
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