Good day forex traders.
Welcome to another EUR/USD forecast by The Forex Koala. I hope your week is off to a good start 🙂
In the previous EUR/USD forecast we noted on the bullish tone of the currency pair. If it continues we might see 1.38. The economic data was kind to the Euro Zone last week generally and more releases are scheduled this week.
Looking at the EUR/USD daily chart above we noted on the bearish drop. I actually posted on our forum of a bearish target of 1.36 and 1.3550. Both scored the home run !!! The weakness started right about the beginning of the trading week. Hence it is often wise to monitor how trading begins for the week. I noted this and set the above targets in the forums. This is why Masoud, Elmar and I always encourage you the reader to join us at our forum. Many of us post our views there and you should too! 1.3480 seems to be the immediate support for now.
We may be seeing the EUR/USD slip due to potential political issues arising from Spain. There are alleged corruption claims of members from the governing party. A recent report mentioned Spain as pivotal in determining whether the Euro Zone will dip into crisis or not. Therefore such political situation is also likely to cause apprehension.
Do monitor closely the situation.