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Good day forex traders.
We noted previously that the EUR/USD is bearish due to the continued Euro zone budget deficit crisis. Investor confidence towards the region’s economy and currency is very much affected.
Looking at the EUR/USD daily chart above, we note that the bearish momentum is strong.
SMA 20 = Bearish
SMA 50 = Bearish
Both SMAs are bearish and this indicates a strong possibility of a bearish momentum. Furthermore the SMA 200 which is an indicator for possible long term trend is bearish too. So far, this has been reflected by the bearish drop as seen above. It is interesting to note that the SMA 20 is functioning as an immediate resistance of sorts for now. Any possible change of trend will need to see this resistance broken first.
Having said so in view of the low volume and low liquidity, unexpected currency pair movements may occur.
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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