Good day forex traders and readers.
A few more weeks and we will see a brand new year! With all the festivities going on, we sure wouldn’t mind some extra cash from forex trading 🙂
In the previous EUR/USD forecast we noted that the currency pair was bullish and the immediate resistance was 1.3680. Should it manage to push further, 1.38 may be next. From a fundamental point of view, the drop in euro zone unemployment rate together with other positive developments increased the appeal of the euro currency.
Looking at the EUR/USD daily chart above we note that the currency pair continued it’s bullish momentum. As of now it has passed the immediate resistance of 1.3680 thus opening up the possibility of 1.38.
I have plotted a trend line to highlight the bullish nature of the currency pair for now. Having said so, you have to exercise prudence and always be ready for any changes.
The Euro Zone has been receiving a number of positive developments and this will probably have an effect on the EUR/USD. Many investors believe that the worst is over and hence the euro zone can only get better.
In the recent ECB meeting, the decision made was to hold the current interest rates. There were also no additional stimulus planned and this gave traders the confidence that the situation in the euro zone has stabilized.
The US Non-Farm Payroll came out better than expected and the unemployment rate dropped. This positive event probably increased risk taking activities.
Next week brings us many important economic releases. Do not trade without proper money management.