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Good day forex traders.
In the previous EUR/USD weekly review, we noted that the SMA 20 is pointing downwards while the SMA 50 is on the verge of doing so. While the week was bullish, the currency pair dipped on the last day of the week. Fundamentally, the European Central Bank was facing increasing pressure to cut it’s interest rates. This was an indication that economists and investors believed that the Euro Zone is facing difficulties economically.
Looking at the EUR/USD chart above, we noted a bearish forex gap upon opening. The EUR/USD have been giving us forex gaps for the past few weeks and the last time i saw so many forex gaps was probably during the 2008 Financial Crisis. Tighten up your seat belts forex trading koalas!
SMA 20 = Downwards
SMA 50 = Downwards
Both SMAs are now downwards and the possibility of a medium bearish trend is here. The SMA 200 is also flattening and we will be watching it closely. A sloping resistance has been plotted above and it may coincide with the 1.36 region for the upcoming week. 1.34 is pretty much holding the currency pair up and should it fail, we may see 1.32 and 1.3 in extension.
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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