Good day forex traders and readers.
It is almost the end of the trading week and I hope you are making money from forex trading! If you are on a loss, do not engage in emotional trading. The market will be there next week 🙂 Proper money management is the way to go.
In the previous EUR/USD update we note that the Currency pair was pushing the envelop of the 1.3280 resistance due to positive economic data from the Euro Zone. If the resistance of 1.3280 falls, a bullish target will be 1.34.
Looking at the EUR/USD daily chart above we note that the currency pair is generally bullish for the week. The 1.3280 resistance is now our immediate support.
As I mentioned earlier, with the fall of the 1.3280 resistance, we may be looking at a bullish target of 1.34.
This week has been a rather positive week for the Euro Zone so far. Germany which is the biggest economy in the Euro Zone released better than expected factory orders, industrial production and trade balance. This probably gave investors increased confidence towards the Euro Zone as theses are signs of an Euro Zone economy picking up.
We still have more economic releases from the Euro Zone upcoming such as French Industrial Production and we should monitor it closely. Continued positive data will probably push the EUR/USD towards the bullish target of 1.34. Do be careful though as we know that support and resistance lines are never a single pip.