Good day koala forex traders!
As the Greek referendum gets under way, there is much apprehension on the outcome.
In the previous EUR/USD forecast we noted that the currency pair was bearish for the week. The strong resistance of 1.14 held. The immediate support of 1.12 was overwhelmed and the currency pair went on to approach the 1.11 extended bearish target. Should the 1.11 support fail, we might be looking at an extended bearish target of 1.08. Bullish recovery if any would probably need to test the immediate support turned resistance of 1.12 followed by 1.14.
Looking at the EUR/USD weekly chart above we note that the currency pair recovered from a forex gap and is now back at 1.11. I love it when my support and resistance analysis works 🙂
With the uncertainty of the Greek crisis, we have to consider both sides of the trade. Resistance levels are 1.12 and 1.14 while a likely strong support lies at 1.08.
We can see from the chart that the EUR/USD has been in a range of sorts and hence perhaps with a Greek resolution we may see some direction.
The Greek crisis remains a test of sorts for the single currency euro. A fall out may suggest the failure of the financial union while continued membership may present a drag on the euro. There is much apprehension in the markets.
Over in the U.S while the unemployment rate dropped, reports mention that it is due to the drop of people looking for jobs rather than getting employed. Earnings remain flat and hence a number of analysts believe that the labor condition in the U.S. will need more improvement. There is even some speculation of the US Federal Reserve holding off the interest rate hike for now.
Extreme caution is advised. Proper money management is critical.
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