Good day forex traders and readers.
Welcome to the weekly forecast of the EUR/USD. Did you make money trading forex for the week? I sure hope you did!
In the previous EUR/USD forecast we noted that the currency pair was bullish for the week. Having said so, it appeared to be struggling to break free of the 1.38 – 1.385 region.
Should the bullish momentum continued, we might be expecting an extended bullish target of 1.4. Any signs of a return of bearish momentum might bring us a possible bearish target of 1.37 followed by 1.35.
Looking at the EUR/USD weekly chart above we note that the currency pair was bullish for the week. Having said so the price action was not a substantial one.
The currency pair remains near the 1.385 region for now. A continuation of bullish momentum will likely see 1.4 as a possible target. Again do be careful as it is possible that resistance increases as the EUR/USD approaches 1.4.
A bearish correction may bring us a possible bearish target of 1.37 followed by 1.35.
The US Non-Farm Payroll came across better than expected as more jobs were created. Having said so, it is important to understand that the drop in unemployment rate is also due to a reduction of the statistic population size.
Across the Atlantic, the euro zone unemployment rate dropped too. However Spain’s unemployment remains critical as it is above 25%. The union of various economies with different situations remain a major challenge for the euro zone.
The European Central Bank is meeting for the minimum bid rate this week and there are some concerns regarding the interest rate. Do be careful of any unexpected developments.
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