Simultaneous Release at
Good day forex traders.
In the previous EUR/USD weekly review, we noted a sharp decent. The SMA 20 being an indicator for short term momentum dipped in response. 1.36 was a potential support which might cap further bearish drops. Fundamentally, sentiments toward the Euro Zone are dropping as the European Central Bank was apparently sending out dovish messages with regards to interest rates. US unemployment remained an issue but the US President Mr Obama outlined a plan to combat the crisis.
Looking at the EUR/USD chart above, a forex gap developed over the weekend again indicating the turmoils plaguing the financial markets. While the currency pair went below 1.36, it recovered fast and went on to end the week on a bullish note.
SMA 20 = Downwards
SMA 50 = Turning downwards
While the SMA 20 remains downwards, it is crucial to await for the SMA 50 to turn downwards completely before any possibility of a medium term bearish trend can be considered. A dip of the SMA 50 below the SMA 200 would be an added possibility of a bearish trend. 1.38 may turn out to be a pivot area between 1.4 and 1.36. Should more bullish correction develop, an extended target may be the 1.42 region which the SMA 200 lies at.
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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