Forex Guides

EUR/USD Weekly Forecast 23 May 16

Good day forex traders.

Welcome to our weekly review of the EUR/USD currency pair. How was your trading? I hope it was fantastic just like our previous review!

In our previous EUR/USD review we noted that the currency pair had dipped below the critical support and resistance region.As expected 1.16 was tested but the bullish momentum burned out. As it was within the previous channel range, we could expect familiar support and resistance targets. We remained optimistic towards our bollinger bands as indicators of support and resistance. Any bullish recovery would likely test 1.14 before opening up 1.16. The immediate bearish target was 1.12 which was also the area of the middle bollinger band.

Looking at the EUR/USD chart above, we note that the currency pair was bearish for the week and it tested our middle bollinger band. It was as per our review and many readers wrote in of their successes. Well done!
As mentioned previously, in our technical analysis, we have made positive use of bollinger bands for some time now and it remains top in our choices. 🙂

Should the middle bollinger band fail, we would expect further bearish momentum.  Immediate support is likely to be 1.1, followed by the lower bollinger at 1.08.

A bullish return will likely attempt to take down 1.14.

Considering the fundamental factors, the US remains more upbeat when compared to the euro zone. In the recent FOMC meeting minutes release, it was observed that the US Federal Reserve officials were mostly inclined to hike interest rates should the economy continue to improve. This probably gave the US dollar a boast in sentiments.

It is without doubt that sentiments play an important role in the movement of the currencies. Do monitor the upcoming economic events.

Trade safely.

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