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Good day forex traders.

In the previous EUR/USD weekly review we noted that both SMAs were bearish and this suggested a strong possibility of a bearish momentum. Furthermore the SMA 200 which is an indicator for possible long term trend was bearish too. We note that the SMA 20 was functioning as an immediate resistance of sorts and any possible change of trend would need to see this resistance broken first. Fundamentally, the outlook for the Euro zone was not looking good. The various euro zone governments were rushing to implement austerity measures, sentiment had yet to benefit from a viable concrete solution to the problem. On the other hand, the US economy was looking rosier and recovery appeared to be gaining momentum with the recent economic data.

Technical Analysis

Looking at the EUR/USD Daily chart above, we note that the SMA 20 continues to function as a resistance. I LOVE IT WHEN MY CHART WORKS ! 

SMA 20 = Bearish

SMA 50 = Bearish

The SMAs including the long term SMA 200 suggest that the possibility of ongoing bearish momentum is strong. I mentioned in my previous review and facebook that the EUR/USD might end around 1.2720 due to my historical support and resistance analysis and it did! HA! I LOVE IT WHEN MY CHART WORKS! Ok enough of proud out blasts for the day :P  

With a closure of the currency pair below 1.28, we may be looking at 1.26 next. Having said so, fundamental considerations must be applied and hence it is important that one plays close attention to both technical and fundamental developments when trading.

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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