Good day forex traders.
It is a brand new month and I hope your trading will be fantastic.
Looking back at the previous forecast, we noted that the pivot point of 1.12 will be a crucial figure to look out for. Speculations are increasing with regards to the US interest rate hike. The EUR/USD continues to be influenced by sentiments.
In view of the pivot region, we continue to advise all readers to consider of a momentum on either side. Our support and resistance levels remain at the edges of the bollinger bands. A prudent idea would be to drop to the lower time frames to monitor first before any commitment.
From a fundamental point of view, the euro zone remains a concern. It was reported in BBC that ” Inflation in the eurozone was 0.2%, unchanged from July and below analysts’ forecasts of a slight increase.
The ECB has introduced a number of stimulus measures, but the inflation rate still remains some way off the bank’s target of just below 2%.
Separate data showed the unemployment rate remained at 10.1% in July.
Analysts had been predicting a slight fall in the jobless rate.”
The above is indicative that improvement to the Euro Zone economy if any is slow. Joblessness and inflation remain a concern. The European Central Bank may implement further currency easing measures and investors may sell off the euro currency in view of the excess liquidity causing pressure on value.
The US Non Farm Payroll while positive, was lower than expected. This may contribute to the speculation of a delayed interest rate hike roadmap but nonetheless we should always view it as a comparison to the Euro Zone where unemployment remains an issue.
Next week brings us the ECB minimum bid rate event. A number of investors are speculating additional easing measures. Either way could bring about unexpected developments and hence do practice proper money management.