Good day forex traders and readers.
Welcome to a quick update on the EUR/USD currency pair.
In the previous EUR/USD forecast we noted that possible support might be at 1.3060 and possible resistance might be at 1.32. From a fundamental point of view, we noted the continued efforts by the US Federal Reserve to ease apprehension regarding quantitative easing tapering. The Euro Zone remained stranded in a recession.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair was slightly bullish earlier but it remains capped by the resistance of 1.32 for now as expected. This is a crucial resistance region that needs to be taken down first before any bullish trend can be considered.
Should bearish pressure continue, we may expect an extended bearish target of 1.3060.
The US existing home sales was weaker than expected and this probably dampened sentiments. Home sales often generate significant economic activities and hence it is a vital measure to track.
It is apparent that the markets took little optimism from the G-20 meetings as it remains to be seen concrete action plans.
On a side note, the bullish inclination of gold will probably add some weakening pressure to the US dollar for now and hence do continue to pay attention to the price of gold.
We have upcoming economic data from French and Germany and hence we should observe the markets reaction to it.