Good day forex traders.
Welcome to our website. It is time for another EUR/USD weekly review.
In the previous forecast we noted that the US Non Farm Payroll turned out much better than expected. Sentiment towards the US dollar were positive. Having said so, sentiments can be fickle and hence one must be prudent always.
Looking at the EUR/USD weekly chart above we note that the currency pair is bullish for the week.
Our bollinger bands remain a useful tool for our technical analysis. The middle band was the resistance for the upwards move.
It is crucial to monitor the shorter time frames next week so that we can observe if the currency pair will bounce back down or extend further up. I am likely to leverage on the bollinger bands as areas of support and resistance.
I would like to bring your attention to the 4 hourly chart above. We note of a spike up for the EUR/USD. This is a good example of what I have been saying always. Sentiments have the power to change the market conditions at a short notice. Hence proper money management is always a must.
The US Retail Sales and Producer Price Index turned out worst than expected. This brought about speculations that the decision to hike interest rate by the US Federal Reserve may be delayed. On the other hand the German Preliminary GDP was better than expected. This probably increased the positive sentiment towards the euro currency.
There are more important economic releases due next week. For example the German Zew Economic Sentiment and US unemployment claims. Do trade safely.