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In the previous EUR/USD Weekly Review, we noted that the SMA 50 was now pointing upwards. A crossover by the SMA 20 to the upside would suggest further bullish advances. Historical technical resistances ahead would be 1.44 / 1.46 and the down trend slope plotted from recent previous highs. From a fundamental perspective, the Euro Zone budget deficit crisis seemed to be past it’s worst as Euro Zone leaders agreed on a 159 billion euros package of new aid for Greece. On the contrary, the US faced disagreements regarding on a decision for the raising of the US debt ceiling. Rating companies continued to caution on the possibility of a rating cut and negative outlook.

Technical Analysis :

Looking at the EUR/USD chart above, we note that the 1.44 line continues to offer a strong resistance. The spike up and down were probably knee jerk reactions.

SMA 20 = Almost flat

SMA 50 = Almost flat

In the previous EUR/USD Weekly Review, we mentioned that a crossover of the SMA 20 to the upside might bring about more bullish advancement. This did not happen and the currency pair remains to be in a consolidation phrase. The almost flat SMAs are suggesting this too. Watch out for the psychological levels of 1.42, 1.44 and 1.46. A breech of the extreme ends may suggest a new momentum.

Continue on to for the fundamental analysis of the EUR/USD Weekly Review to understand more about the underlying market sentiments.

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