Good day forex traders and readers.
Welcome to the weekly edition of our popular EUR/USD forecast. We are on to our 6th year and definitely still going on strong 🙂
In the previous EUR/USD forecast we noted that the currency pair received a strong bearish push towards the end of the week. While the 1.35 / 1.352 failed to provide a strong support, we should monitor the price action to see if the EUR/USD would be drawn back to the region. From a fundamental point of view investors were concerned of the mulled inflation of the Euro Zone.
Looking at the EUR/USD daily chart above we note that the currency pair was bullish for the week. As per warned in the previous EUR/USD forecast, 1.352 is often a strong pivotal point as seen in the previous price actions and indeed the EUR/USD has shot above it for now.
The EUR/USD has yet to see a full candle close above 1.36 and hence we need to monitor if the bullish momentum will be sustained. If so, we may see some immediate resistance at the 1.3680 – 1.3700 region. An extended bullish target will be 1.38.
If the bears manage to halt the ascend, we will likely hit support at the region of 1.36 and 1.35 – 1.352 region. An extended bearish target will be 1.34.
The Euro Zone brought about mainly disappointing economic releases for the week. Of particular concern for many investors was the weaker than expected industrial production of Germany. Being the largest economy of the Euro Zone, this will probably have far reaching effects on the region.
Over in the US, while the US Non-Farm Payroll came in worst than expected, investors are relived that jobs were at least being created. In fact the lower than expected unemployment rate of 6.6% brought about some positive sentiment.
In view of the overall fundamental situation, traders are to be reminded that the EUR/USD remains ranging as no significant advantage is seen for either side of the Atlantic.
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