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Good day forex traders.
In the previous EUR/USD review we noted a bullish correction since the test of 1.32. The bullish momentum is strong as it managed to break the resistances of the SMA 20 / 1.36 / 1.38 within a week. From a fundamental analysis point of view the Euro was soaring due to renewed optimism that the budget deficit crisis of the euro zone would be over soon. Vows to ensure stability and the capitalization of euro zone banks were taken favorably by the markets. Having said so, one must continue to remain vigilant towards the possibility of any adverse developments. After all the debt situation in the US is not getting any better for now.
Looking at the EUR/USD chart above, we noted that the bullish momentum continued and had since gained a fair bit.
SMA 20 = bullish
SMA 50 = bearish
The SMA 20 has crossed the SMA 50 and we should be looking out for the SMA 50 to turn bullish too for the possibility of a sustained bullish momentum.
The EUR/USD is now facing 2 strong technical resistances. The 1.42 region and the SMA 200. The 2 cents gain by the currency pair during the later part of the week is believed by many to be too fast and there may be a technical bearish correction.
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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