EUR/USD: Will It End The Bullish Trend?

This is the question that many traders are mulling.Will the recent pullback in the US Dollar be a real step back? And, will it end the bullish trend?
It might be unlikely for the EUR/USD to take the downward trend, as it lost its momentum. At the closing session on Friday,the euro rose above 1.2500; this movement might change all expectations regarding the European currency.

Days have passedon the EUR/USD without touching this critical level and it sustainedits gainstill today during the Asian trading session; as the pair traded above 1.2550, which signals a bullish Euro.

However,this could be a temporary movement for the USD, as it may continue its bullish trend.Some traders consider that such gains for the EUR/USD were due to a massive wave of profit taking for short positions on the pair and these gains can be lost once traders decide to buy the USD back again, as a safe-haven currency.

At the closing session on Friday, Gold gained dramatically as well and maintainedthese levels till today; as itreached 1194$, which is considered to be another indicator for the Forex market trend.

Here are the major Resistance (R) & Support (S) levels of the EUR/USD:

S2 1.24800
S1 1.25050
Pivot Point 1.25580
R1 1.25950
R2 1.26450


As for today’s figures, a few minor data will be released. But, this doesn’t mean a quiet market, as Mario Draghi is expected to speak today. Being the head of the ECB, which controls short term interest rates, he has more influence over the Euro value than any other person. His comments may determine a short-term positive or negative trend.

Moving to the U.S., the Industrial Production announcement is scheduled for release today; measuring the change in the total inflation-adjusted value of the output produced by manufacturers, mines and utilities.

· Forecast:0.2%
· Previous:1.0%

A higher than expected reading should be taken as positive for the USD, while a lower than expected reading should be taken as negative for the USD.

The Empire State Manufacturing Index will also be released; it rates the relative level of general business conditions of the New York state. A level above 0.0 indicates improving conditions, while a level below 0.0 indicates worsening conditions. The reading is compiled from a survey of about 200 manufacturers in the New York state.

· Forecast:11.10
· Previous:6.17


Disclaimer: The prices and news mentioned in this outlook are absolutely no guarantee of future market performance. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades. Engaging in CFDs or Spot FX carries a high risk to your capital. You should not engage in this form of investing unless you understand the nature of the Transaction you are entering into and the true extent of your exposure to the risk of loss. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based.