Good day forex traders and readers.
How was your EUR/USD trading for week? Hope it was good!
In the previous EUR/USD forecast we noted that the currency pair was bearish for the week. It was near the extended support target of 1.08. An important point to note was that the bottom bollinger band might serve as an immediate support at 1.08. Bullish correction would likely aim for 1.1 followed by 1.11.
Looking at the EUR/USD weekly chart above we note that the currency pair was bullish for the week. It did approach the 1.08 region as expected before a bullish correction took place.
I always feel good when my forecasts are correct but on the other side, I have to remind myself and you dear readers that forex is never completely predictable. We have to always be mindful of unexpected developments. Proper money management is crucial.
The current bullish recovery may be temporary but going by the numbers, it is no doubt testing 1.1. A clearance of it will bring us to 1.11. Any bearish return will once again target 1.08.
From a fundamental point of view, nothing much has changed. Often short term volatility is the result of sentiment. The euro zone remains pressured by it’s weaker members such as Greece. Many analysts believe that there will be an impact to the euro currency due to the Greek crisis.
Over in the U.S. , it was recently reported that the U.S. debt is now 357% of GDP. A number of economists believe that this will have a detrimental effect on the U.S. economy. While an excellent job loss report was released, analysts were quick to note that the nature of such reports are very volatile and a sustained trend must be observed.
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