how is your weekend so far? Great i hope.
Starting this week, i will be posting weekly reviews of the EUR/USD. With this, i hope we can shed more light on the trend of this currency pair and hopefully learn together.
I have setup a chat widget and a QnA widget for discussion and i hope you will participate in it and give your views. If you have a question, feel free to post it. If you know the answer to a question, feel free to answer it! Together we learn :)
Do note that the weekly reviews will be written with a long term perspective.
Looking at the daily chart above of the EUR/USD, we are currently still within the bullish trend.
Although the currency pair did attempt to test the trendline a few days ago, the attempt failed and the price continues it's way up.
1.4900 seems to be the resistance for bullish momentum now seeing how 3 days failed to remain above it.
A number of important economic releases are due next week, including the likes of the German ZEW Economic Sentiment, German Prelim GDP q/q, US Unemployment Claims, US Trade Balance.
We may have traders watching these news on both side of the fence and we may hence get ranging conditions.
One particular point to note is the recent talks of the FED maintaining an extended period of low interest rates versus the other central banks talks of ending stimulus or even having done their rate hikes.
This may tip the bias towards the weakening of the US Dollar.
The rallies of the S&P 500 and Gold may put additional pressure on the US Dollar too as positive sentiments may encourage additional risk seeking and demand for higher yield, something the US Dollar cannot provide now.
For more views, you can visit Casey at his blog or forexcrunch.
Trade safe.
