Good day forex traders.
Welcome to our weekly review of the EUR/USD. I hope this week will be an excellent one for all.
In the previous EUR/USD forecast we noted that currency pair remained capped by the middle bollinger band. This had been the situation for about two months. This is one of the reason why we believe that bollinger bands are one of the most useful technical indicators for forex.
Looking at the EUR/USD weekly chart above we note that the currency pair was bullish for the week. It had breached through the strong resistance of the middle bollinger band.
The current economic sentiment towards the euro zone is likely on a brighter note. The quantitative easing measures by the European Central Bank are seem to be aiding the economies of the region. The debt crisis of the various euro countries seem to have stabilised for now and hence fallen out of the media scrutiny for now.
The recent US Non-Farm Payroll clocked in weaker than expected. As a closely monitored economic indicator, a dampening effect on the US dollar is likely exerted. Investors will likely doubt the trajectory of upcoming interest rate hikes by the US Federal Reserve.
Next week continues the line up of important economic events. We have the US unemployment claims, retail sales, German Preliminary GDP at the end of the week and more.