Monday, August 29, 2016

EUR/USD Fell and It Will Likely Continue Falling

After the positive way in which the FED Chair Janet Yellen spoke about the US economy back on Friday the EUR/USD pair fell with almost 170 pips, and today, at the beginning of the new trading week, the pair continued falling and dropped with another 50 pips.

Despite all that, if we look at the daily and weekly time frames we will see that the pair is in the strong support zone around 1.1150 – 1.1200.

We should keep in mind, however, that in the end of the current week will be announced the new data about the US change in Non-farm Payrolls, which usually causes strong market volatility. I think that it is quite possible for the pair to remain in a relatively tight range around its current level until then and on Friday we might see another drop towards the support at 1.0950, which can be seen on the weekly time frame.