By: Tradehits.com
What we've seen…
The EUR/USD fell during the bulk of the week, and on Friday managed to close below the 1.3550 support level, an area that we have been watching. However, we do not think that the market has completely broken down from a longer-term perspective yet, at least not until we get below the 1.3500 handle. That being the case, we need to see a daily close below that level before we start selling. On the other hand, there certainly is no reason to be buying this pair at this moment time either, so having said that we are awaiting that breakdown.
What to expect…
The strong dollar trend on back of U.S. economic recovery and Fed tapering has not changed. Risk appetite will probably return after the FOMC meeting this month.'- IG Markets Securities (based on Bloomberg). It is once again attempting to break the rising support line to the downside, but seems to be unable to do that for now, being that 1.3610/1.3584 is reinforced by the weekly S1 and the 100-day SMA. Nevertheless, we retain our bearish bias with respect to the Euro in the long term, expecting the currency to stay capped by 1.38 and eventually breach the six-month downfall.
This weekly Forex forecast was provided by TradeHits.