Simultaneous Release at
Good day forex trading koalas.
In the previous EUR/USD weekly review, we noted that the short term SMA 20 was pointing downwards while the medium SMA 50 was almost flat. We would be looking out for a downwards dive for the SMA50 to consider the possibility of a sustained bearish momentum. Having said so, up against any bearish advances would be the strong 1.4 and the long term SMA 200. Fundamentally, we continued to receive disappointing developments from both the Euro Zone and US. Italy seemed to be facing challenges with it’s bonds and more countries’ bond ratings were cut. In the US, a consensus for the increase of the debt ceiling was sailing through rough waters.
Technical Analysis :
Looking at the EUR/USD chart above, we noted a textbook support and resistance scenario whereby the bottom was halted by 1.4 and the top was capped by 1.44.
SMA 20 = Almost flat
SMA 50 = Pointing upwards
As mentioned in the previous EUR/USD weekly review, a downwards pointing SMA 50 will further suggest a bearish momentum. This did not happen and the currency pair turned towards the upside instead after facing support at 1.4. With the SMA 50 now pointing upwards, a crossover by the SMA 20 to the upside will suggest further bullish advances. It may be good to note that the SMA 200 which tracks possible long term trends is still pointing upwards.
Technical resistances ahead will be 1.44 / 1.46 and the down trend slope plotted from recent previous highs.
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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