Good day forex traders and readers.
It is the second day of the trading week and let us take a quick look at the EUR/USD currency pair.
In the previous EUR/USD forecast we noted that the currency pair was bullish and 1.38 might be tested next. The German Ifo Business Climate was better than expected and it probably lifted sentiments. Gold remained bullish.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair continues to test the upper limit of the current tight range of trading. It is capped by the upper bollinger band and should it be breached, 1.38 may be next followed by 1.388.
Any bearish return will need to breach 1.37 / 1.368 before heading to 1.36.
It was reported that foreign sales for Germany rose 2.6% in the last quarter of 2013. This is encouraging as it suggests a continued momentum of pick up by the economy of Germany. With unemployment manageable for the country, the largest economy of the Euro Zone remains the leading economic force for the region.
Economic forecasts for the Euro Zone are due to be released soon and hence I urge everyone to monitor closely in case of any unexpected developments.