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In the previous EUR/USD weekly review, both the SMA 20 and SMA 50 were flat. This suggested further uncertainty to the medium term trend. The SMA 200 laid right below the EUR/USD price action and it might serve as a support. If broken, it might lead to a major break down. Fundamentally the weak US Non-Farm Payroll support brought concern to many investors. Furthermore the Euro Zone continued to struggle against the budget deficit crisis as rating agencies continued to scrutinize efforts.
Looking at the EUR/USD chart above, we noted a forex gap at the beginning of the trading week. Being below the SMA 200, it was a taste of things to come, a sharp dip in favor of the US Dollar.
SMA 20 = Downwards
SMA 50 = Flat
With the sharp decline, the SMA 20 had turned downwards. Pending a flip over the SMA 50, a change to downward pointing by the SMA 50 will probably suggest further the possibility of a medium term bearish EUR/USD. The 1.36 level is functioning as a support now and should it fail, we may see further bearish advances.
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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