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Good day forex traders.
In the previous EUR/USD weekly review, we noted that the week was a bullish week. It closed around 1.34 which is historically an important region of support and resistance. The SMA 50 did not turn bearish and hence a sustained bearish momentum might not be a high possibility. Fundamentally the market sentiments were more positive due to developments of the Euro Zone budget deficit crisis. It was reported that there was a proposal to avail of funds from the central banks of Europe via the International Monetary Fund IMF to assist Euro Zone countries in need of funds. This was to enable a workaround of regulations regarding the providing of direct support from central banks in Europe to member countries. A drop in the latest US unemployment rate to 8.6% among other US developments resulted in better market conditions too.
The EUR/USD developed a slight bearish trend as it remained capped by the SMA 20. Nonetheless, the region of 1.34 remained very much in focus for the week as daily currency pair movements continued to touch it.
SMA 20 = Bearish
SMA 50 = Flat
With the SMA 50 still flat, one must consider that the direction of the EUR/USD probably still remains an uncertainty. Any strong bearish move will probably focus on the target of 1.32. I expect fundamental issues to continue to drive the immediate movements of the EUR/USD.
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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