Good day forex traders and readers.
It is the second day of the trading week and I hope all is well so far. Are you in a trading position currently?
In the previous EUR/USD forecast we noted that the 1.36 pivotal level remained crucial and we should monitor the currency pair. While the Euro Zone was generally reporting good economic figures, the low volume and liquidity might be affecting momentum.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair is slightly bearish since the start of the new trading week. It is once again above the strong support and resistance of 1.36.
Based on the technical observation of the chart, immediate support may be expected at 1.3580 while immediate resistance may be expected at 1.3680.
The German retail sales came in at a much better than expected figure of 1.5%. This definitely suggests that the economy of the number 1 country in the euro zone is forging ahead. Besides that, the unemployment change was also at a much better than expected figure of – 15k. As I always mentioned that the employment market is crucial for a country, this positive release will probably boast much sentiments towards Germany and the Euro Zone as a whole.
As we know, the US is also coming across as positive lately and hence I expect demand to exist on both sides of the trade. The upcoming US Non-Farm Payroll this Friday will definitely be an event to watch out for as investors wait to see the progress of the US employment market and it’s impact on the US Federal Reserve tapering.