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Good day forex trading koalas.
In the previous review we noted that the Euro Zone has started on a two day deficit crisis summit. Watch out for risk aversion as officials agree and disagree on action plans. The economic data also gave mixed results and investors were probably undecided too.
A look at the EUR/USD chart above shows a test of the 1.32 line underway. Recently the EURUSD alternates between bullish and bearish momentum and during such market conditions, technical studies will probably help. We last saw a bullish momentum testing the region of 1.3360. I LOVE IT WHEN MY CHARTS WORK !
Earlier in the day, the German Ifo Business Climate came out better than expected and that probably gave a boost to the market sentiments. Having said so the rain came on the parade and reports of Moody’s downgrade of Ireland’s credit rating by five notches with a negative outlook probably extinguished much risk appetite. Most equities indexes are red.
A downgrade of a nation credit ratings often brings about much impact. The countless of investments facing potential risk often depresses markets quickly. As the currency pair tests the 1.32 line, it may not be a surprise to see a further down swing.
Trade safely and always consider the risk of a forex gap over the weekend.
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