Good day forex koalas.
Second day of the week and i hope you have already made some pips. Yesterday brought us bearish indication from the SMAs but the EUR/USD was pretty much without a specific direction.
G8 meeting was not conclusive of a concrete solution for the economic woes of the Euro Zone and hence it’s impact on the markets was limited too.
The currency pair remains around the vicinity of the 1.28 region.
SMA 20 = Bearish
SMA 50 = Bearish
While the EUR/USD is still not showing a clear direction, a failure to close above 1.28 continues to reflect a bearish outlook. As mentioned, a full candle close above 1.28 is needed before any consideration of bullish correction.
It was reported that the Organization for Economic Cooperation and Development commented that Spain will continue to be in recession next year as challenging conditions continue to strain. As the Euro Zone’s fourth largest economy, this is not an encouraging sign.
It was also reported that the demand for US bonds continues to increase. This is seen as an indication of continued risk aversion.
There are 6 weeks more before the end of the previous US Federal Reserve stimulus program ” Operation Twist “. A number of investors are speculating of a new round of stimulus.
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