Good day forex traders and readers.
Welcome to another weekly review of the EUR/USD forecast. I hope you had a good trading week. Do remember to not engage in emotional trading. If you are in the red and feeling pressured, take a break! The market will always be there for you. 🙂
In the previous EUR/USD forecast we noted a possible head and shoulders technical pattern. Germany also reported increasing unemployment. On the global front, IMF cut the growth forecast for China.
Looking at the EUR/USD daily chart above we note that the currency pair went bullish instead and tested the immediate resistance of 1.3050. As the head and shoulders failed, this further reminds us that in forex, proper money management is always a must as no one can predict with complete accuracy.
As suggested from the chart, the currency pair continued to receive bearish pressure as the EUR/USD eased back under 1.3. Pay close attention to this support and resistance region. Failure or success to breech the 1.3 line may set the initial stance for the week’s trading.
We are currently facing a number of challenges for the Euro Zone and hence apprehension is noted. European equities are generally red for the week. In various reports, the German retail sales disappointed investors and Euro Zone unemployment rate has increased to a new record high. With regards to the unemployment crisis, it is crucial to note that youths form a major contribution to it and there are concerns of social problems.
With the cut of China’s growth by the IMF, investors are worried that the global economy may be affected if China continues to slow down.
In the US, economic conditions continue to appear attractive although there are concerns noted regarding the possible reduction of quantitative easing measures by the US Federal Reserve. The US Non-Farm Payroll is due this week and hence do pay attention to the unemployment situation.