Good day forex traders and readers.
It is almost the end of the trading week and I hope you got yourself a good harvest of pips.
In the weekly EUR/USD forecast we noted the need for confirmation with regards to a bullish momentum. We also observed the volatile nature of the currency pair.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair received a strong bearish push earlier but had since recovered. I am going to state the obvious that the market really want to test the 1.3680 resistance. As I mentioned earlier, if the currency pair clears this huddle decisively, we may see 1.38 as an extended bullish target. The immediate support is 1.358 – 1.36.
The US dollar is facing weakness now probably due to a number of unexpectedly weak economic data. Taking center stage is probably the US Retail Sales which turned out negative. As consumer economic activity is crucial to the economy of the country, the market will often react to the situation.