Good day forex traders and readers.
Welcome to another weekly forecast of the EUR/USD currency pair. It is a good time for us to read the charts and plan for the new forex trading week ahead!
In the previous EUR/USD forecast we noted that the 1.38 region is usually a strong resistance and the EUR/USD had not cleared it decisively. Should the bullish momentum continue however the next resistance was likely to be 1.3880.
Looking at the EUR/USD daily chart above we note that the currency pair was bullish for the week. I mentioned that should the 1.38 resistance be cleared, 1.3880 might be next. Indeed so it was and the currency pair failed to breach the resistance for now.
Should the bullish momentum continue it will be exciting as the next extended bullish target will probably be 1.4. If there are no extraordinary influences, I will expect some resistance towards it.
Any bearish correction will likely see an unwinding of positions. Expect 1.38 / 1.37 / 1.368 to be support regions.
With the political situation of Ukraine fragile, we must be wary of any unexpected developments. I always mentioned that investors do not like sovereign uncertainties. The region in concern is a major oil node for Europe and any disruption may upset the economy.
The European Central Bank decided to hold the Euro Zone interest rates and this probably improved the sentiments for the euro currency.
The US Non-Farm Payroll came in as a mixed results of sort. While more jobs than expected were created, the unemployment rate climbed. While encouraging, I will like to reiterate my long standing stance that both the US and Euro Zone remained fragile and currency demand often sways to the economy that appeared to be less weak.
As economic releases continue next week, be on the lookout as usual.
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