Good day forex traders.
Welcome to our weekly EUR/USD review. In our previous article, we noted that investors sentiments were positive towards the Euro region. The currency pair was testing the 1.14 resistance.
Looking at the EUR/USD weekly chart, I would like to take a macro view for now. We can see that the current region is a major resistance region.
The bullish momentum has not make a clean break and we must continue to monitor the momentum on the shorter time frame. Continued bullish momentum may see the currency pair heading back to the 1.2s. If the bearish pressure returns, we may see downside potential till 1.1.
The recent political challenges for the US has not gone unnoticed in the markets. BBC reports ”
JP Morgan Chase boss Jamie Dimon condemned the state of US politics on Friday, saying political gridlock is hurting the US economy.
He said Americans must “get our act together” or risk limiting themselves to 1.5% to 2% growth.
“It would be much stronger growth had we made intelligent decisions and were there not gridlock,” he said.
Mr Dimon said it was “almost an embarrassment” to be an American citizen at the moment.
The bank boss has pushed for investment in roads, bridges and other infrastructure and called for lower corporate taxes.
President Donald Trump had promised to prioritise those policies, but his agenda has been derailed by conflict-of-interest issues and the investigation into his presidential campaign’s ties with Russia.
Republicans have been divided among themselves over healthcare reform, causing uncertainty in one of the largest sectors in the economy. ”
Across the Atlantic, the Euro Zone despite the challenges of differing economies and Brexit, had so far presented a largely united front. As mentioned before, investors and traders often reward stability with increased demand.
It is evermore critical that the economic developments are monitored. Do trade safely.