Good day forex traders.
Welcome to our popular weekly report of the EUR/USD currency pair.
Last week we noted on a possible climb to hit resistance at 1.142. Any recovery would likely fall back to the middle bollinger band. Sentiments were crucial to momentum.
Looking at the EUR/USD chart above we note that the currency pair attempted to test our mentioned resistance. It had since eased back to our middle bollinger band as mentioned. I continue to be pleased with the performance of our technical indicator.
1.12 is a likely pivot point and hence the currency pair may go either ways. The top and bottom bollinger bands will be our reference resistance and support for the new week. Do drop down to the lower time frames for clues to momentum.
The US Federal Reserve chair spoke and there were numerous reports on it. On BBC it was mentioned that ” Ms Yellen, speaking at a three-day symposium in Jackson Hole, Wyoming, did not comment on when rates would rise. But she said “the US economy was nearing the Federal Reserve’s statutory goals of maximum employment and price stability”.
She added: “In light of the continued solid performance of the labour market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.” ”
While this contributed to the stronger US dollar performance this week, we must be reminded that the rate hike is likely a gradual one.
It was also reported that the Eurozone economic growth dropped by half in the second quarter. France which is one of the major economy of the euro zone reported no growth. The jobless rate in the euro zone remained above 10% in June.
We must be prudent when making trading decisions. A major influence on the EUR/USD remains to be the sentiments of the market. Among the various economic releases due next week is the US Non Farm Payroll. This is a highly monitored event which may set the stage for future currency momentums. Do have your proper money management.