Good day forex traders.
Welcome to another update of the EUR/USD. In the previous forecast we noted that a bleak fundamental outlook plagues both side of the Atlantic. As the currency pair pushes higher, caution was called for bullish traders as 1.26 is usually a strong resistance.
Solution : ProRealTime
I used a daily chart of the EUR/USD as i wanted to highlight this bullish channel and how the currency pair is encountering resistance along the region of the upper limit. This falls near the 1.26 line too. Should the EUR/USD fail to break above the resistance region, we may be looking at a correction down towards the lower limit of about 1.2330.
Trouble is brewing in the Euro Zone. ECB Draghi is facing pressure from a number of German officials due to the plan for the ECB to continue buying bonds of debt laden Euro Zone countries in a bid to reduce the borrowing costs. The German officials believed that this does not help the situation. Draghi mentioned that the ECB must continue to focus on it’s mission to ensure a stable Euro currency.
Readers i mentioned many times that the markets do not like political complexities and this is probably causing apprehension and risk aversion. ( Trading ranging is narrow )