Good day forex traders and readers.
Welcome to the popular weekly EUR/USD forecast. Are you ready for the new trading week? I am definitely ready to earn some pips 🙂
In the previous EUR/USD forecast we noted that the currency pair was bullish and had to overcome the resistance of 1.368 / 1.37. The Euro Zone brought about some positive GDP figures and this was good for the sentiments. The US remained frozen in the cold weather and industrial performance dropped.
Looking at the EUR/USD daily chart above we note that the currency pair was slightly bullish for the week. It had spent most of the time ranging between 1.37 to 1.378.
Should the bullish momentum persist, we may see 1.38 followed by 1.388 – 1.39. Do be aware that 1.38 is usually a strong resistance region.
Any bearish correction will likely see 1.37 to 1.368 as an immediate support. After which the extended bearish target may be 1.36 and 1.352.
The economic data over the week did not impress much as confidence for Germany came in weaker and likewise for most of the production figures. This fundamental situation might have dampened the bullish push. It is crucial to note that while the Euro Zone is strengthening, besides the stronger economies of Germany, etc, other European countries like Spain continue to face economic challenges such as unemployment.
During the G20 meetings, the European Central Bank president mentioned that the ECB stands ready to adopt stimulative measures should deflation occur. He mentioned that economic data should tell if measures are needed by the next ECB meeting.
Important economic releases such as the German Ifo Business Climate are due next week. Close monitoring should be done.
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