Good day forex traders.
How was your forex trading? Hope you made money. As we head into December, one cannot help but feel that time flies indeed!
In the previous EUR/USD forecast we noted that the currency pair was bearish for the week. It remained capped by the lower bollinger band as expected. The bollinger bands were widening and this suggested that the momentum was gaining. Bearish targets remained at 1.06 / 1.05 and 1.045.
Fundamental developments also indicated possible US dollar strength.
Looking at the EUR/USD weekly chart above we note that the currency pair continued to be bearish for the week as expected. It achieved the bearish target of 1.06.
The price action is now just above the lower bollinger band. We will need to observe if the resistance has now turned into a support region.
Bearish targets ahead are 1.05 and 1.045. Any bullish recovery is likely to aim for 1.08.
Many investors are expecting the European Central Bank to continue or even expand on the quantitative easing program for the euro zone. With the easing of monetary supply, it is possible that the euro value will be dampened.
After the minimum bid rate event of the European Central Bank, the US Federal Reserve Chair Yellen is due to testify. We may gain further insights on the anticipated interest rate hike and hence unexpected currency pair movements may happen too depending on the sentiments.
Another economic event to look out for is the US Non-Farm Payroll. The possibility of an interest rate hike will likely be influenced by the situation of the jobs market. In view of the year end low volume condition of the forex market, forex spikes may occur.
Do consider your trades carefully. Sometimes not being in a position may be a prudent choice.