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Good day forex traders.
In the previous EUR/USD weekly review, we noted that the 1.34 region did not hold. With the SMA 20 over the SMA 50, all that remains is for the SMA 50 to turn fully bearish and the possibility of a sustained bearish momentum will be high. The SMA 200 which is an indicator of possible long term trend is now slightly bearish. From a fundamental point of view, the European budget deficit crisis is still in a complicated situation and with the recent credit rating cut of Belgium, sentiments remains depressed. In fact it was reported that Germany is apparently struggling with it’s own bond auction. This suggests that events the Euro Zone’s fiscally sound countries are starting to be implicated.
Looking at the EUR/USD chart above, the week was a bullish week. Closing around the 1.34 region, this historically important region of support and resistance is an area to be closely monitored.
SMA 20 = bearish
SMA 50 = flat
The SMA 50 did not turn bearish and the currency pair did not dip further too. With the SMAs not aligned in a direction, the possibility of a sustained momentum remains uncertain.
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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