Good day forex traders.
Welcome to our weekly forecast of the popular currency pair. We have come a long way now, writing since 2008. Thank you for the support.
In recent weeks we have seen limited movement for the EUR/USD. Risk appetites alternate creating a ding dong environment. Many traders who do not seek to understand sentiments are caught unprepared.
Looking at the EUR/USD weekly chart above, we note that the currency pair had a bearish week. The bollinger bands remain useful as indicators of possible support and resistance. 1.0900 is likely the immediate support while 1.1180 may function as a bullish target.
The worst than expected German ZEW Economic Sentiment brought a dent to the sentiment towards the euro currency. Traders are concerned as it is the biggest economy in the euro zone.
While the ECB did not implement easing measures, it did not rule out on the possibility of one in the coming months.
With the above developments and the ongoing Brexit, the European Union is facing a suppressing pressure on it economies. This is likely to exert bearish pressure on the euro currency too.
Over in the US, better than expected housing starts brought renewed speculations of a interest rate hike soon. Housing with its vast economic outreach is often a closely monitored statistic. This will probably increase demand for the US dollar and thus bring bearish pressure to the EUR/USD.
Next week brings many important economic data and events such as German Ifo Business Climate, US Federal Fund Rate and US unemployment claims. Should the German Ifo Business Climate turn out worst than expected, it is likely to bring further bearish pressure to the euro currency.