Good day forex traders and readers.
The week is wonderful so far for me and I hope it is for you too. Do remember that in forex, slow and steady wins the race.
In the previous EUR/USD forecast we noted that the 4 hourly technical bollinger bands were exerting an amount of influence on the currency pair. Sentiments were apparently stabilizing as officials from the US Federal Reserve were attempting to calm the markets regarding the tapering of quantitative easing.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair had since tested the 1.3050 region and is now targeting the extended bearish target of 1.2980.
In the meanwhile the EUR/USD continues to show indications of further bearish movement. Should 1.2980 fail, 1.28 might be next.
The US equities remains green for now as sentiments seems to be stabilizing. Having said so, gold prices continued to drop and has reportedly hit a 34 months low on concerns of the US Federal Reserve scaling back on stimulus. As the gold price retreats, we also see a corresponding rise in the US dollar. This suggests that some correlation still exists.