Good day forex traders and readers.
Welcome to another EUR/USD forecast by yours truly !
In the previous EUR/USD review we noted that the currency pair was at the critical region of 1.3 and it would be crucial to monitor closely for more clues. Fundamentally the US continued to enjoy relatively positive developments versus the euro zone.
Looking at the EUR/USD daily chart above we note that the currency pair adopted a bullish stance for the week so far. The immediate resistance is 1.3110. Should this fall we will be looking at 1.3200.
It is the week of the US Non-Farm Payroll and hence extreme volatility may be possible.
The US unexpectedly reported a slow down for manufacturing. This may have led to speculations that due to this, the US Federal Reserve may be further deterred from any thoughts of reducing stimulus. As such we may be look at a risk taking sentiment as equities in many markets are green today.
Tomorrow brings us the ADP Non-Farm Employment Change. Do monitor the release.