Good day forex traders and readers.
Welcome to another EUR/USD forecast and I hope you are having a great weekend. Forex trading is never an easy feat but together we will find success !
In the previous EUR/USD forecast we noted that the currency pair was experiencing volatility and hence caution was advised. From a fundamental point of view, much talk was generated regarding the US quantitative easing. Furthermore the Euro Zone appeared to be on a track to reduce austerity measures so as to improve the economic situation.
Looking at the EUR/USD daily chart above we note that the currency pair is consolidating towards the 1.3 support turned resistance. That region is also the middle of the bollinger bands. I expect the bollinger bands to continue to provide some indications as to the range of the currency pair. This will probably translate to 1.2790 to 1.3010 . If the EUR/USD fails to breach 1.3000 , the currency pair may turn bearish towards 1.2800.
It was reported that the European equities posted an overall drop this week. There were concerns reported of apprehension regarding the plan of a scale back of the quantitative easing measures of the US Federal Reserve. China was also reported to have dipped in terms of manufacturing.
Having said so, the German Ifo Business Climate was better than expected giving some positivity towards the region.
As we head into next week, do continue to monitor the economic situation on both sides of the Atlantic as the sentiments tend to favor the least troubled economy.