Simultaneous Release at
Good day forex traders.
In the previous EUR/USD review, we noted that the bullish momentum continued and had since brought the currency pair higher. It faced 2 strong technical resistances which are the 1.42 region and the SMA 200. The 2 cents gain by the currency pair was believed by many to be too fast and some traders were looking out for a technical bearish correction. Fundamentally the markets were encouraged by recent developments such as an agreement to boost the Euro Zone rescue fund to 1 trillion euros and the persuasion of bondholders to take 50 percent losses on Greek debt.
Observing the EUR/USD chart above, the strong resistances of 1.42 and SMA 200 mentioned last week did fulfill. This call for a I LOVE IT WHEN MY CHART WORKS moment !
SMA 20 = Flattening
SMA 50 = Flattening
After a sharp dip which erased the 2 cent gain and more, the currency pair is settling into a technical consolidation for now. SMA 20 and 50 are both flattening and this suggests a lack of sustained momentum. An interest thing fact to note is that the SMA 200 which is used to suggest long term momentum is slowly round a top.
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.
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.