Good day everyone.
It is time for another of our EUR/USD review. I hope your trading week was ok. In view of the recent uncertainty, the koalas here are not in a position for now.
In the previous EUR/USD forecast we noted that the currency pair was bullish for the week. The lower bollinger band did hold as a support.
The 1.08 line was breached and it suggested that the bullish push was strong. While the currency pair had since eased away from the middle bollinger band, there was nothing to suggest that the bullish momentum was over. If the momentum continued, 1.1 might be the next bullish target.
Looking at the EUR/USD weekly chart above we note that the currency pair was again bullish for the week. It hit our bullish target of 1.1 as expected.
*Dear readers. We are testing a new support model for our site. Please support us by completing a mini survey if it appears below. All 6 questions should be answered. Thanks.*
Any bullish momentum will need to breach the 1.1 region. We can expect 1.12 as the immediate bullish target. A correction will likely have the EUR/USD heading towards 1.08.
Both upper and lower bollinger bands will continue to be our extended targets.
The momentum generated by the previous sentiments towards the European Central Bank interest rate cut continued. A less than expected cut of the deposit facility interest rate brought about demand for the Euro Zone currency.
The week brought us a worst than expected US unemployment claim, adding towards the pro euro currency sentiments.
Having said so, it is crucial to note that in view of the anticipated interest rate hike later this week, all price actions are likely to be highly sentimental in nature. Such market conditions are often unpredictable and possibly volatile. This is also compounded by the year end low volume situation.
Continue to monitor the shorter time frames to pick up any momentum. Extreme caution is advised.