Good day forex traders and readers.
It is the start of a new forex trading week and I hope with our aspirations we will turn out successful with a good profit of pips when the week ends 🙂
In the weekly edition of the EUR/USD forecast we noted the tight trading range of the currency pair and also the varied fundamental situation of the Euro Zone. The European Central Bank stands ready to support the economy.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair is on a bullish trend since early February.
The EUR/USD is current testing the top bollinger band and if it succeeds, the usually strong resistance region of 1.38 will be tested. We need to observe the price action closely as this is crucial for any continuation of bullish strength.
Should the currency pair fail, we will likely see 1.37 / 1.368 tested again.
The German Ifo Business Climate came in better than expected and that probably added a bullish boost to the EUR/USD. We must remember that sentiments play a major role in short to medium term currency movements and hence we need to continue to track each economic release.
In the meanwhile Gold continues to show bullish momentum too, adding to the weakness pressure to the US dollar.