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In the previous EUR/USD Weekly Review, we noted that both SMAs are flat. This suggested that any long term momentum might be a distant possibility. The long term SMA 200 laid right below the current price action of the currency pair and might serve to prevent any major downside intrusion. It is typically a strong support and resistance region. From a fundamental point of view, both the American and European economies displayed signs of a fading recovery and growth. Concerns were strong as investors sought to speculate the future trends.

Technical Analysis

Looking at the EUR/USD chart above, the currency pair did test the upside resistance but as the SMAs suggested, a strong sustained momentum was missing.

SMA 20 = flat

SMA 50 = flat

With the two SMAs flat, it is currently still difficult to forecast any trends with reasonable possibility. Range traders are probably benefiting from the recent ranges while trend traders remain patient. Downside moves if any will probably face support at 1.42 and the region of the SMA 200 which is around 1.4100. Upside moves will probably target the 1.4510 region again before having a go at 1.46. The current technical situation is reflecting the fundamental apprehension.

Continue on to for the fundamental analysis of the EUR/USD Weekly Review to understand more about the underlying market sentiments.

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