Good day forex traders.
Welcome to our weekly forecast of the EUR/USD. How have you been? Hope trading was profitable.
In the previous review we noted that the currency pair was bearish. We remained optimistic in our bollinger bands analysis due to the high hit rate. Upcoming movements of the currency pair would likely react at the various bollinger bands. Fundamental outlook remained sluggish.
From a technical point of view, the EUR/USD continues on a bearish momentum. It broke passed the middle bollinger band support.
Considering the past month dips, we may be looking at an attempt to reach lower levels.
We need to be mindful that recent movements suggest that the currency pairs are still very much influenced by sentiments.
Possible support and resistance lines includes 1.12, 1.1 and 1.08.
With regards to the fundament situation, we note that the markets are hesitant in anticipation to US Federal Reserve chair Yellen comments.
On Friday it was made and it came across as positive as Yellen mentioned that an interest rate hike in the upcoming months is appropriate considering the current economic climate.
While I have come to the conclusion to take comments with a pinch of salt due to the fluid nature of developments, what is most important is how markets react. It probably created a positive sentiment towards the US dollar.
We need to continue monitoring the economic events and sentiments.