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Good day forex traders.
In the previous EUR/USD weekly review we noted that the 1.34 line remained pivotal for the EUR/USD and that the SMA 20 might serve as an immediate resistance. Both SMAs were still downwards and the possibility of further bearish moves remained. Having said so, both the 1.32 and 1.34 might be instrumental as supports. The SMA 200 remained flat and close observation should be continued. Fundamentally the European Central Bank ECB did not lower the minimum bid rate of the euro currency and it helped to increase demand for the euro currency for now. Reports of a plan by the ECB to recapitalize the European banks was increasing optimism. However opinions regarding Greece continued to defer. The US NFP was better than expected but US consumer credit decreased, suggesting a lack of confidence to spend or an effort to pay down on debts.
Looking at the EUR/USD chart above, we see a bullish correction since the test of 1.32. It is interesting to note that the bullish momentum is strong as it managed to break the resistances of the SMA 20 / 1.36 / 1.38 within a week.
SMA 20 = Turning Bullish
SMA 50 = Bearish
It is important to note that the SMA 20 has tuned bullish with the recent developments. Any possibility of a renewed bearish dip would depend on the currency pair’s ability to hold up against the previous resistances of 1.38 and SMA 50.
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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