Good day forex traders.
I hope everyone is having a great weekend. Been having a lack of sleep due to my work commitments. Weekend is the only time to catch up on that! Do you get enough sleep on a daily basis?
In the previous forex forecast review of the EUR/USD, we noted that both SMAs were flat and that indicated uncertainty. Fundamentally we noted that the job market in the US might be cooling and the budget deficit woes continued to plague the euro zone.
Looking at the EUR/USD chart above, the currency pair ended the trading week near previous week’s close.
SMA 20 = flat
SMA 50 = flat
Both SMAs remain flat suggesting no significant push either ways. This was reflected this week since the currency pair closed the week almost flat. Both regions of 1.3 and 1.32 are probable support and resistance.
It was reported that 2 US Federal Reserve heads agreed that the current situation gave no need to increase the interest rate right through 2014. Reading in between the lines, it was probably an indication that the US economy remains fragile. This coincides with the recent lower than expected US Non-Farm Payroll and the still depressed housing market.
It was reported that China’s growth for the last quarter came in at 8.1%. This growth is the least in almost 3 years. China’s economy is fueling the global economic recovery and any moderation is often taken adversely. This comes at a time when the euro zone struggles to get over with Greece and contain Spain’s debt problems.
I mentioned that we may be heading towards a period of risk aversion. Monitor the equities closely for any signs of a correction.
Related Forex Articles from the Koala Forex Training College.