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Good day forex traders.
In the previous EUR/USD weekly forex forecast review we noted that the technical indicators were suggesting continued bearish momentum. The close of the currency pair below 1.28 gave rise to the possibility of seeing 1.26 as an extended target of a bearish dip. Fundamentally the outlook for the Euro Zone remains poor. German factory orders fell the most in almost three years for November. Furthermore the many upcoming debt redemption due in 2012 continues to put a strain on the region.
Looking at the EUR/USD Daily chart above, we can see a bearish channel beginning right at the 1.38 region. The SMA 20 had functioned as an immediate resistance capping any bullish correction.
SMA 20 = Bearish
SMA 50 = Bearish
I mentioned in the previous weekly EUR/USD forex forecast that after 1.28 we might see the extended target of 1.26. It almost hit that region in view of the US Dollar strength this week. I LOVE IT WHEN MY CHART WORKS ! I believe that this may be a probability this week should the SMA 20 continue to function as a resistance.
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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