Good day forex traders and readers.
Welcome to the weekly EUR/USD forecast. The most popular forex currency pair comes along with unpredictable volatility making it complicated to profit.
In the previous EUR/USD forecast we noted that the currency pair was bearish for the week. It did not manage to sustain any bullish momentum and fell towards the 1.38 support.
It was testing 1.38 and any bullish recovery would likely see 1.388 followed by 1.4. Previous price action indicated possible bearish strength near 1.4. Should the bearish momentum continue, we were looking at a possible 1.37 and an extended 1.35.
Looking at the EUR/USD weekly chart above we note that the currency pair was bullish for the week. Having said so, it appears to be struggling to break free of the 1.38 – 1.385 region.
If the bullish momentum succeeds, we may be expecting an extended bullish target of 1.4. Do be cautious though as we may face increasing bearish strength as we approach this strong resistance.
Should the bearish momentum return, we may be looking at a possible bearish target of 1.37 followed by 1.35.
The euro currency saw demand this week despite the underlying Ukrainian crisis sentiments. Rating agencies released a number of positive outlooks relating to the euro region.
The German Ifo Business Climate also came out slightly better than expected and it probably increased the positive sentiment towards the region.
Next week is a crucial week as we will see critical economic data released for both sides of the Atlantic. Inflation related data of the Euro Zone will be released and also the US Non-Farm Payroll. Proper money management is a must.
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