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EUR/USD Forecast August 10, 2016, Technical Analysis

Daily Forex Reports | by FX Empire | Wednesday, 10 August 2016 08:19 UTC
The EUR/USD pair initially tried to fall during the day on Tuesday but found enough support to turn things back around and form a slightly positive candle. However, this is a market for me that is very difficult to deal with, and with that being the case I just don’t have the idea of going into this market for any real length of time at this point. I believe that the 1.12 region above is going to be resistive, but I do find it interesting that we found quite a bit of support at the 1.1050 level below. That is a bit more supportive than anticipated, as I expected the market to reach towards the 1.10 level below there.

 

However, we have to wonder whether or not the Federal Reserve is going to be able to raise interest rates later this year, as I personally believe that we are looking at possibly one interest-rate hike during the month of December, but that’s it. Honestly, that will be more or less to save face, as I believe that the global markets will continue to offer reasons for Janet Yellen to stay on the sidelines.

 

On the other side of the chart though, we have the European Union. That is an area of the world that I have no interest whatsoever in investing, simply because the British leaving of course has thrown so much uncertainty into that area. On top of that, we also have to worry about whether or not there is going to be significant growth in the European Union. After all, we will more than likely see some type of economic slowdown, and of course the lack of the British of course will possibly be damaging to the EU itself as well. With this, I believe that the “de facto” currency to own during the course of the year is probably going to be the US dollar going forward, but I don’t necessarily think is going to be one of those situations where we explode to the upside when it comes to the greenback.


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