Good day forex traders and readers.
Welcome to our popular EUR/USD forecast and I hope all is well for your forex trading. Do remember that forex is never a get rich overnight activity and hence slow and steady wins the race.
In the previous EUR/USD forecast we noted that the currency pair had a correction. This was expected and the currency pair was capped on the upside by the region of 1.28. It was near the potential support region of 1.26 and it might be possible that the region function as a consolidation point.
Looking at the EUR/USD weekly chart above we note that the currency pair is indeed in a consolidation phrase. Our forecast was accurate and I hope our readers made money from it.
The EUR/USD did extend beyond 1.26 momentarily and this suggested a strong bearish pressure for the previous dip. Having recovered to 1.28+ , we are noting downside momentum again. A crucial region to note would be 1.26 again.
The euro currency has fallen out of favor with many investors recently. The direction of the European Central Bank to introduce stimulative measures in view of the weak euro zone economy is perceived as a drag on the currency’s value.
Providing a pull factor would be the American economic recovery. Joblessness has fallen considerably suggesting a healthy progress since the previous financial crisis.
In the meanwhile a latest announcement by the European Banking Authority has stated that 24 European banks have failed stress test of their finances. This may add yet another dampening effect on the euro currency and hence caution is advised.
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