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Good day forex trading koalas.
In the previous EUR/USD Weekly Review, we noted from a technical analysis point of view that the SMA 20 is still above the SMA 50 and hence a cross over would be more of a confirmation. Furthermore the previous upper trendline of a bearish channel continues to provide a sizable support for any bearish exploitations. From a fundamental analysis point of view, both the American and Euro Zone economies face respective challenges and the recoveries face the threat of a derailment.
Looking at the EUR/USD Daily chart above, as mentioned last week the upper trendline of the previous bearish channel continues to function as a support. The currency pair bounced off the line and embarked on a bullish climb towards 1.46. This was also a result of the region of 1.42 holding it’s fort.
SMA 20 = Downwards, flattening
SMA 50 = Downwards, flattening
I mentioned previously that having the SMA 20 crossing below the SMA 50 in a bearish momentum would be a stronger confirmation. It did not happen and since then, the EUR/USD had climbed into an ascending momentum. The SMA 20 is now above the SMA 50 and i will be looking out for both SMA 20 and SMA 50 to round the bottom and point upwards. As the 1.46 region is a strong support area, care must be employed. Early June also saw the EUR/USD failing to penetrate this region.
Continue on to TheGeekKnows.com for the fundamental analysis of the EUR/USD Weekly Review.
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