Good day forex traders and readers.
It is the first day of the new trading week and I hope you are ready to make some pips!
In the weekly EUR/USD forecast we noted that the currency pair faces possible support at 1.35 / 1.352 / 1.36 and resistance at 1.368 / 1.38.
Looking at the EUR/USD hourly chart above we note that the currency pair seems to be slipping lower. I wanted to provide some insights on the shorter timeframes. Continue to monitor the price action and from the chart, we can conclude that continued bearish pressure is likely to target the 1.352 region. Any bullish return will need to overcome 1.368 first.
Do remember that support and resistance lines are never a single pip.
Most of the equities markets continue to receive negative sentiments as part of a fallout from the China economic concerns and emerging markets’ woes. We need to wait out this sentiment impact before fundamentals can exert more influence.
Be careful of the various economic events these week. In particularly the FOMC meeting may result in significant impact should any unforeseen developments occur. ( For example the tapering of the quantitative easing measures of the US Federal Reserve )