Good day forex traders and readers.
Welcome to the weekend and I hope you are having a great time with your family! Hopefully your forex trading was good too and you gained pips for the Black Friday shopping party 🙂
In the previous EUR/USD forecast we noted that the currency pair was bullish and 1.36 was the immediate resistance. From a fundamental point of view, the sentiments were favoring the euro zone as confidence reports were positive.
Looking at the EUR/USD daily chart above we note that the currency pair continued on a bullish momentum and tested 1.36 as expected! It is during such moments when I get the confirmation that my forex chart prediction is accurate that attracts me to forex. The sense of accomplishment!
The immediate trend seems to be of a bullish one as seen from the ascending trend line that I plotted. We need to closely monitor the resistance region of 1.36. If it fails, we may expect an immediate resistance of 1.368, followed by an extended bullish target of 1.38.
On the other hand should bearish momentum overwhelm the EUR/USD, we may be expecting a support region at 1.3480.
It was reported that the Euro Zone unemployment rate fell for the first time since 2011 and it is now off the record high in Sept. This definitely brought about some relief to the markets with regards to the economy of the Euro Zone.
In another report, inflation edged higher for the Euro Zone, bringing some optimism that the economic wheels are moving and the European Central Bank will be less pressed for easing measures. The ECB is scheduled to meet next week and this event requires close monitoring.
As we see the Euro Zone slowly normalizing it’s economic conditions, we must remain focused on the big picture and continue to be prudent. Countries such as Spain and Greece remain challenged by tough economic situations.
Next week also brings the US Non-Farm Payroll and hence do trade safely.