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Good day forex traders.
In the previous EUR/USD weekly review, we noted that the SMAs are on the verge of a bearish indication. Seems like the EUR/USD forecast might be that of frequent “rainy” days soon too! 1.34 was the immediate support for the price action. Fundamentally, the continued lack of an unified solution to the Euro Zone budget deficit crisis was implicating more countries. Spain and Italy came under scrutiny and borrowing costs rose. The US deficit reduction package looked set to be a dead end.
Looking at the EUR/USD chart above, we noted that the 1.34 region did not hold. As i mentioned throughout the week, the currency pair had it’s eyes set on this region! It happened right after the cross of the SMA 20 over the SMA 50. I love it when my charts work!
SMA 20 = bearish
SMA 50 = almost bearish
Now that the SMA 20 is well over the SMA 50, all that remains is the SMA 50 to turn fully bearish. Once so, the possibility of a sustained bearish momentum is high. It is important to note too that the SMA 200, an indicator of possible long term trend, is now slightly bearish. The EUR/USD now sits at the region of 1.32 which was tested during early October. Should this fail, the currency pair will probably begin it’s onslaught of the 1.3 region.
Complete the review!
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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