Good day forex traders.
Welcome to another of our popular EUR/USD weekly forecast. I hope you are having a great weekend so far.
In the previous EUR/USD forecast we noted that the currency pair did continue to bounce off the support / middle bollinger band as expected. It tested the 1.14 bullish target as mentioned and had since eased below. It was important to observe the price action in the upcoming week. Bullish momentum would need to test and clear 1.14 before targeting 1.16. Should bearish pressure returned, the support level / middle bollinger band of 1.12 would likely be targeted.
Looking at the EUR/USD weekly chart above we note that the currency pair ended slightly lower than the previous week. It tested the upper bollinger band as expected.
I am extremely pleased with the performance of our bollinger bands. Time after time, it interacted with the EUR/USD, giving us certain anticipation for the price action.
In the week ahead, I expect 1.14 and the upper bollinger band to be our immediate resistance. The extended bullish target remains at 1.16. A bearish pushback will likely target the middle bollinger band at 1.12. This happens to be a common pivotal region.
The US dollar is facing a general fall in sentiment as the US Federal Reserve interest rate hike slips into a cloudy timeline. Anticipation of the hike had gone on too long with no development. The recent global economy slowdown probably added to the uncertainty.
Over in the euro zone, recent developments are lukewarm. The European Central Bank minimum bid rate event is scheduled for the upcoming week. While no surprises are expected, do be careful of any hawkish or dovish statements made which likely would result in knee jerk reactions.
We Need Your Support!
As you know, I do not have any budget and I have never charged you for all the work. I need your support to get the word out on the website so that more people will visit and I can continue writing for you. Please share the website in facebook, forums, websites and communities. Thank you.