Good day forex traders.
Welcome to our weekly EUR/USD review. As we prepare to start a new forex trading week, it will be prudent to read up on analysis.
We know in the recent weeks the Brexit event brought about increased uncertainty and apprehension. It was vital to monitor short time frames to track the shifting sentiments and it is still vital now.
Looking at the EUR/USD weekly chart above, we note that the currency pair went back to the starting region of the week before.
I am pleased with the performance of our bollinger bands and remain so. Our resistance lies at 1.1190 while the support is at 1.0920. A test on the lower bollinger band again will indicate stronger bearish inclinations.
From a fundamental point of view, it was reported that Germany’s production was dropping at a fast rate. Being the largest economy of the Euro Zone, the impact on sentiments will be significant. Europe also faces a resurgence of Russia which will likely add to the apprehension.
Over across the Atlantic, the US Non Farm Payroll came in better that expected. This brought about renewed speculations of an interest rate hike. The sentiment towards the US dollar probably received a positive boost. This is evident in the chart above.
Next week brings us important economic data such as the unemployment claims and retail sales of the US. Do monitor closely and trade safely.