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Good day forex traders.
In the previous weekly EUR/USD forex forecast, we noted that as far as the SMAs are concerned, we were still having bearish possibilities. The region of 1.3 – 1.31 was to be monitored. If the currency pair went above the SMA 50, a change of trend might be happening. Fundamentally the S&P downgrade of countries in the Euro Zone had little effect. Equities continued to show progress suggesting that the risk appetite was apparently good.
Looking at the EUR/USD daily chart above, we note that the SMA 50 failed to resist the bullish momentum and the currency pair went on to test the 1.32 region.
SMA 20 = Bullish
SMA 50 = Neutral
Forex traders i mentioned that when the SMA 50 failed, we may be looking at a new bullish direction. While this is not 100% definitive, it is important to note that the short term SMA 20 has turned bullish and the medium term SMA 50 is now flat neutral. When both SMAs turns bullish with a cross over of the SMA 50 by the SMA 20, we may see a sustained bullish momentum.
Complete the review!
Continue on to TheGeekKnows.com for the fundamental analysis of the EUR/USD Weekly Review to understand more about the underlying market sentiments
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