Simultaneous Release at
Good day forex trading koalas.
In the previous EUR/USD weekly review, we noted that from a technical perspective, the 1.44 continued to provide a strong support / resistance. With both SMAs almost flat, possibility of a sustained momentum seemed small. Fundamentally, we saw trouble brewing in both markets. In the Euro Zone, the apparent lack of strong demand for the Euro currency despite the debt ceiling problem in US suggested that investors remained apprehensive towards the Euro Zone. In the US, the debt ceiling crisis had made global headlines and threatened to derail the global economy.
Looking at the EUR/USD chart above, we see that the 1.44 line continued to play an important role in capping further bullish advances. The sharp dip followed by the subsequent climb on the last two days of the week was probably fueled by fundamental factors.
SMA 20 = Pointing upwards
SMA 50 = Point downwards
The SMAs are painting an interesting situation whereby the medium term shows a bearish possibility while in the short term, a bullish. This is typical of volatile conditions in the currency exchange market where the currency pair direction is not focused but highly volatile. It is important to note that the SMA 200 which indicates long term trend possibility is still bullish and is fast approaching the price action. As it often act as a strong support and resistance, Thursday’s dip might have be stopped by it too. Definitely a region to look out for this coming week.
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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