It tested the region of 1.12 thus indicating a strong bullish uplift. In this week, we need to pay close attention to the price action. 1.12 needs to fall before the extended target of the upper bollinger band can be considered. Immediate support will likely be the resistance turned support bollinger band. This happens to be the strong support and resistance region of 1.0 too.

Fundamental Analysis

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.

Trade safely.