Good day forex traders and readers.
Welcome to another update of the popular EUR/USD. We noted a fairly bullish bias so far as there were no adverse pressure plaguing the currency pair. Having said so, in forex things often take an unexpected turn and hence caution was advised.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair received a strong bearish down push and is now testing the support of 1.3680.
As expected, the 1.3680 support is likely to provide some consolidation for the EUR/USD. Should it fail, we may see 1.36 next. A successful stoppage of bearish pressure will probably see the currency pair test 1.3760.
There are a number of factors influencing the market sentiments for now.
The Ukraine crisis is causing apprehension as investors worry about the instability of the region.
Speculations of an European Central Bank decision to adopt stimulative policies have also increased. Traders are concerned about a struggling euro zone economy.
Over in the US, it was reported that the US Federal Reserve is likely to continue tapering despite the weaker signs from the economy. This probably caused concern among a number of investors who are apprehensive about a economic recovery derail.
As we approach the week and month end, caution is advised.