Good day forex traders.
Second day of the week and i hope everyone is doing ok.
In my previous EUR/USD forecast we noted the resistance of 1.26. This is typically a strong S&R region and hence we might encounter some bounce. The Euro Zone continues to face complications as Spain fell under increased scrutiny.
Looking at the EUR/USD 4 hourly chart above, we note that the region of 1.26 continues to resist the bullish tests.
With the speculation of an interest rate cut by the ECB and also the upcoming US Non-Farm Payroll, apprehension may render a small trading range. The fundamental situation remains as nations of the Euro Area continue to muddle over proposed plans and solutions to tackle the 3 year old crisis. On a side note, the Reserve Bank of Australia held rates and this probably kept negative sentiments in check.