Good day forex traders.
Welcome to our weekly review of the EUR/USD. I hope your trading for the week was profitable.
In the previous weekly review we noted that the resistance lay at 1.1190 while the support is at 1.0920. 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 would be significant. The US Non Farm Payroll came in better then expected. This brought about renewed speculations of an interest rate hike.
Looking at the EUR/USD weekly chart above we note that the currency pair is back at last week’s closing region. The range for the upcoming week is likely to be a resistance of 1.1190 and a support of 1.0920. We may see some immediate support at the current region.
Towards the end of the week, we saw a number of better than expected developments coming from the US. The US Retail Sales came in at 0.6%. This is more than the expected of 0.1%. Being a general indicator of economic health, sentiments towards the US dollar improved. It likely negated the dovish developments earlier in the week. Regardless, we must be aware that the US Federal Reserve officials are mostly less optimistic towards an interest rate hike soon.
Next week brings important economic events such as the German ZEW Economic Sentiment, an ECB Press Conference, US unemployment claims and more. Trade safely and do have proper money management.