Good day forex traders and readers.
Welcome to another forex review of the popular currency pair EUR/USD. I hope you are trading well so far for this week.
In the previous EUR/USD forecast we noted that the currency pair was below 1.24. This suggested a further bearish possibility towards 1.22. We need to observe if it snaps back to 1.24.
Looking at the EUR/USD hourly chart above we note that the currency pair has parked at the support of 1.23 for now. There seems to be considerable short term support at this level and an economic event may be needed to tip the momentum further.
Our bearish target remains at 1.22 while a recovery will likely target 1.24.
The highlight of the day is probably the European Central Bank announcement of interest rate. While the market generally concludes that there will be no change, do be prepared for any unexpected developments. Even if there is no change to the interest rate, any comments by the officials on the possibility of momentary easing is likely to inflict further weakness to the euro currency.
In the meanwhile, US equities are still bullish indicating a positive sentiment towards the U.S. economy.
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