Good day forex traders.
How is your week so far? Hope it is turning out to be a great week! As we move into the second week of the new year, liquidity in the markets will be turning normal. Having said so, proper money management is still a must.
Looking at the EUR/USD hourly chart above, we note that the currency pair is testing the 1.28 strong resistance. Last week i mentioned that the EUR/USD may end at the 1.2720 line and it did. I LOVE IT WHEN MY CHARTS WORK! A forex gap developed too but it was covered quickly by a bullish advance. Should the bullish pressure continue, we may see 1.2880 next. If the 1.28 region holds, we will probably fall to 1.2720.
The Euro Zone continues to face economic pressure from various sources. The dampen progression due to austerity measures and the lack of investors’ confidence. The less than expected german industrial production may be a sign of a impending recession. The euro zone minimum bid rate due later this week is a data to be closely monitored as there are speculations of a rate cut. A lower interest rate may affect the appeal of the euro currency.
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