Good day forex traders and readers.
Welcome to the weekend weekly forecast of the EUR/USD! I hope you are having a great weekend so far enjoying a great rest with your loved ones. To all the readers sending me your well wishes, thank you. Your support will keep me on 🙂 so are we ready to make some money from forex?
In the previous EUR/USD forecast we noted that the currency pair was bullish and an extended target would be the upper bollinger band. An area of caution would be any risk aversion should the tapering of the quantitative easing by the US Federal Reserve be started.
Looking at the EUR/USD daily chart above we note that the currency pair did achieve our extended bullish target. Congratulations to the readers that achieved it too.
The price action for the week was somewhat muted with the EUR/USD receiving significant bearish pressure. We will probably see more bearish defenders covering the resistance of 1.36.
As I mentioned in the AUD/USD forecast previously, the rumor mill is hard at work churning the latest speculations of a tapering plan to be announced in October. With the quantitative easing program at risk, markets would no doubt react to the possible US Federal Reserve action. Be careful of risk aversion feeding on to increasingly US dollar strength.
The US Non-Farm Payroll is due his Friday and it will be a closely monitored event due to the recent shaky foundations of the US economy. Investors will no doubt be interested to see the progress of the US employment market.
With the US government under the threat of shutdown tomorrow and later in the month due to the debt ceiling, I am inclined to watch out for risk aversion. Do have proper money management in place.