Good day forex traders.
Welcome to our weekly review of the EUR/USD.
It was a good week for us and I hope it is too for you. Do remember that proper money management is critical for success in forex.
In the previous EUR/USD forecast we noted that the bollinger bands continue to provide good forecast of possible currency pair interaction. We also noted on a possible uplift or the EUR/USD.
Looking at the EUR/USD weekly chart above we noted that the currency pair is testing the middle bollinger band. We are very pleased with the performance of our bollinger bands as it has successfully predicted areas of influence for a countless number of times.
As the EUR/USD is now at a pivot region, it remains to be seen if it will continue its bullish momentum or head back down. Close monitoring should be done at the shorter timeframes to determine immediate direction.
The US Non-Farm Payroll came out as a positive growth with previous months revised higher. BBC reports ” The case for a rise in US interest rates has been bolstered by strong jobs data for October.
The economy created 161,000 posts last month and job creation for the months of August and September was revised up.
The unemployment rate edged lower to 4.9%, according to the latest report from the US Department of Labor.
The healthy labour market will support the view held by many analysts that the US Federal Reserve will raise interest rates next month.
Average hourly earnings were up $0.10, or 0.4%, in October, a slight acceleration from September’s 0.3% increase.
“A solid employment report for October further clears the path for a December Fed rate hike,” said Chris Williamson, chief business economist at IHS Markit. ”
Indeed with this outcome, many are increasing their bets on a interest rate hike come December. The US unemployment rate is also now below 5%. With such, a stronger US dollar is speculated due to the purportedly increased demand. Having said so, we should be mindful of the possibility of a fallout from the US Presdential Election.
In other market news, many analysts are speculating that we have reached a bottom for commodities. Gold demand has increased too.
Next week brings among the usual economic data, the US Presidential Election. Do have your proper money management in case of any unexpected event.