Hello forex traders.
I hope you had a great week making money off forex trading. Many of my readers having been writing to me about how the recent trend had been excellent. I am happy for you :). Just do remember that nothing last forever and hence proper money management is always a must.
From our previous reviews of the EUR/USD, we note that the currency pair has been bearish for sometime now. It had overcame the strong support levels of 1.28 and 1.26. The US economy was producing favorable numbers and investors were pleased.
Looking at the EUR/USD weekly chart above we note that the currency pair continued on a bearish path. I also zoomed out to highlight the significance of the momentum.
The strong support of 1.24 may be the next bearish target but we must not take things for granted. Always be prepared for any corrections. A quick look also indicates a bottom at 1.2.
The US Non-Farm Payroll was better than expected and the unemployment rate is now under 6%. This is a crucial sentimental factor and thus puts the U.S. economy in a favorable light. In comparison, the Euro Zone continues to face challenges as unemployment and lagging production pledge the region.
The Ukrainian and Russian crisis continues to inflict uncertainty on the markets and hence this will likely result in a dragging effect on the Euro Zone economy.
The increasingly stimulative approach of the European Central Bank is probably going to erode the value of the euro currency too.
As of now our approach is simple. Investors will likely favor the better performing economy and hence boost the respective currency.
To get the most out of TheGeekKnows, join our free email mailing list. Get forex updates, forecasts and warnings! Join on the right side bar.