Good day forex traders and readers.
In the previous EUR/USD forecast we noted that the currency pair tested the support of 1.11 as expected. The current technical situation suggested a possible bearish drive to parity. EUR/USD at 1.0 is likely a major psychological support and hence we may expect resistance. The extended bearish target would be 0.98 although this was very much uncertain for now. Resistance targets would have us aiming for 1.12 first.
Looking at the EUR/USD daily chart above we note that the currency pair did edge lower towards 1.0. Having said so, as expected we noted significant support pressure.
The middle of the bollinger bands is likely to serve as an immediate resistance and it sits around 1.1065.
Should the continued bearish momentum achieve 1.0, we may be looking at 0.98. However as mentioned previously, bullish support may be of a challenge.