Good day forex traders.
Masoud is busy and here i am instead of the usual weekly EUR/USD forecast by Masoud!
With the G8 meetings over the weekend, many investors speculated the extend of it’s influence for the currency pair. With the frequent appearance of forex gaps, many are prepared for one.
True to the saying that you can never have a 100% prediction in forex, there is a lack of any substantial forex gap.
SMA 20 = Bearish
SMA 50 = Bearish
SMAs remain bearish and the EUR/USD is testing the technical resistance of 1.28. Any bullish correction needs to break this resistance before moving on. Should bearish momentum return, the extended target of 1.26 remains. On a side note, the near perfect doji suggests that investors may be waiting for more developments.
The G8 meetings came and went. Usual words of support and commitment were made. Growth was on the agenda as countries reaffirm the need for it. Having said so, no concrete plans were laid out and hence the positive impact to the markets was probably minimal.
While the markets are pretty much immune to the usual talks of growth, China’s strong indication of upcoming stimulus probably helped prop up the markets. One reason is that China’s track record on the implementation of policies is good and hence when China talks, the markets listen. Check out the equities world wide 🙂
As the markets warm up for the week, expect more developments.
Related Forex Articles from the Koala Forex Training College.