Good day forex traders and readers.
Welcome to another of the popular EUR/USD weekly forecast. New readers will find our write ups interesting as easy understanding is core to our writing philosophy 🙂
In the previous EUR/USD forecast we noted that the currency pair faced support at 1.3520 as expected. The bearish push was strong and hence close monitoring of 1.35 – 1.352 should be done. Any bullish recovery would likely see the EUR/USD testing the resistance of 1.3680 again.
Looking at the EUR/USD daily chart above we note that the currency pair turned bullish towards the end of the week unexpectedly. Having said so, regular readers would be well prepared as the currency pair did face resistance as expected at 1.3680! 🙂 And this calls for a I LOVE IT WHEN MY CHART WORKS moment !
Should the bullish momentum continue to build up, the next resistance region will probably be 1.378 – 1.380.
Any return of the bearish trend will likely see 1.36 as the immediate support followed by the strong support region of 1.35 – 1.352.
It was reported that the European Central Bank President Mario Draghi mentioned that he observed indications of a great improvement in the health of the euro-area economy. As long term readers know, I always mentioned that comments from officials of central banks often result in significant impacts upon sentiments. This positive comment probably brought about positive sentiments as indeed we have recently observed various signs of an improving economy. For example we recently noted the return to the market of Ireland’s bonds as the bailout program brought about austerity success.
A caution to note would be the recent China economic hiccups. As a major driver of the global economy, any negative development is likely to impact the rest of the world. The fallout of the emerging markets is also an area to watch out for in case of any spread of financial contagion.
Next week brings a number of crucial economic releases and hence proper money management is crucial. Look out for the likes of the German Ifo Business Climate due early week.
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