Good day forex traders and readers.
We are in to the second quarter of the year and I hope you are in the green for your forex trading account. Slow and steady wins the game and hence never risk your money unnecessarily. There is no get rich over night approach to forex.
In the previous EUR/USD forecast we noted that 1.1 would likely be a bullish target and if it was achieved, we might be looking at an extended target of 1.12. As far as bearish targets were concerned, the EUR/USD would need to overcome parity first.
Looking at the EUR/USD weekly chart above we note that the currency pair did test 1.1 as expected. The resistance held and the EUR/USD ended the week just shy of it.
Should the bullish momentum continue, we may expect a target of 1.1180. A bearish return will likely seek to reach 1.0780.
We see the current level as a test of the bearish weekly channel too and hence caution is advised.
The US Non-Farm Payroll turned out weaker than expected. While it remains positive, there are talks among analysts that it might serve as a reminder to the US Federal Reserve that any interest rate hike is to be considered carefully. The strength of the U.S. Dollar may be affecting the export economy.
Across the Atlantic, while the euro zone remains far from being economically stable, the weaken euro currency is probably starting to provide some uplift to the industries.
We need to be on a look out for any possible reversal or correction.
We Need Your Support!
As you know, I do not have any budget and I have never charged you for all the work. I need your support to get the word out on the website so that more people will visit and I can continue writing for you. Please share the website in facebook, forums, websites and communities. Thank you.