Good day forex traders and readers.
Welcome to the popular weekly edition of the EUR/USD forecast. Recent times saw much ranging for this currency pair and I hope you made good use of it 🙂
In the previous EUR/USD forecast we noted that the currency pair was bullish for the week. We warned previously that the region of 1.352 is often a strong pivotal point. Immediate resistance was at the 1.3680 – 1.3700 region. In the meanwhile, a number of disappointing economic data emerged from the Euro Zone.
Looking at the EUR/USD daily chart above we note that the currency pair continued to be bullish for the week although it did face volatility throughout. The EUR/USD is now testing the immediate resistance of 1.368 / 1.37 as mentioned in the previous forecast.
We need to monitor closely the price action at the current resistance. Should the bullish momentum overcome it, we may expect upside potential towards 1.38.
If bearish pressure returns, we may expect 1.358 / 1.36 as an immediate support followed by 1.35 / 1.352.
The Euro Zone brought about a positive development for the week. It was reported that Gross Domestic Product or GDP for short rose 0.3% which is better than expected. Economists estimated 0.2%. Economists believe that this will probably ease the pressure on the European Central Bank to implement stimulative actions.
Across the Atlantic, the severe weather affecting the US probably caused a slowdown of the economy. It was reported that factory production unexpectedly declined. This drop is the most since May 2009.
Next week brings more critical economic data, for example the German ZEW Economic Sentiments. Observe the data and the effects on the sentiments.
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