Good day forex traders.
Welcome to our latest review of the popular EUR/USD. I hope your forex trading week was fantastic!
In the previous EUR/USD forecast we noted that the currency pair made an attempt to test the upper bollinger band as expected. This was as per our forecast and many of our readers benefited.
The EUR/USD was above 1.12 and below the upper bollinger band. This would be the immediate support and resistance levels. Further bullish momentum might see 1.14 should the upper bollinger band fail.
A bearish recovery could see 1.1 tested.
Looking at the chart above, we could see that the bulls eased off for the week. The range was limited from a technical point of view.
A continuation of the bearish momentum will likely see 1.1 as the next extended target. This is also the region of the middle bollinger band.
From a long term point of view, the EUR/USD remains bounded in a wide channel with no sides of the market gaining a foot hold.
This week saw a number of flash points for the currency pair.
We have the possibility of a British exit from the Euro Zone weighing down on the region.
A quick look at the gold price indicates possible risk aversion as the price spiked. It may be the accumulation of the various concerns. China’s ongoing economic growth remains a worry for many.
Over in the US, it was reported that Federal member Bullard mentioned that it may not be prudent to continue hiking interest rates for now. He said that the interest rate hike forecast of the US Federal Reserve may not be as such considering the current economic conditions.
The Philly Fed Index was a negative -2.8%. This indicates that manufacturing continues to slow down. This likely contributes to negative sentiments towards the US.
Next week brings important economic releases such as the US unemployment claims, preliminary GDP and German Ifo Business Climate.