Good day forex traders and readers.
In the previous EUR/USD forecast we noted that the currency pair had a slight bullish bias to it. German’s confidence sentiment took a dip in the latest ZEW report but the market apparently shook it off.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair is easing off from the recent top. Immediate range remains between 1.368 to 1.38.
Look out for the middle bollinger band as it may function as an immediate support should there be a continued bearish momentum.
We are heading towards the FOMC meeting minutes event for the US and I urge proper money management to be taken in case of any unexpected developments. Investors will probably be particularly sensitive towards taper related updates.
Manufacturing data from France and German will be due in the later part of the week and the information may have an influence on sentiments.