Good day forex traders!
Welcome to another weekly EUR/USD forex forecast review! I hope everyone is having a great weekend. Mine is tiring as i burned long hours to migrate to our new website design. I am out of my koala breath! Hope you like it.
In the previous review we noted that the SMAs were flat. No candles closed above the 1.32 line and there was a gentle bearish trend line sloping down to meet the recent steep bullish trend line. Perhaps a possible technical squeeze in the making. The long term SMA 200 was also approaching the current price action and it is usually an immediate support and resistance region.
Fundamentally, the Euro Zone continued to receive media attention. With Greece out of the way. Spain was heavily scrutinized.
Looking at the EUR/USD daily chart above, the possible technical squeeze i mentioned did happen! I LOVE IT WHEN MY ANALYSIS WORKS 🙂
SMA 20 = Flat
SMA 50 = Flat
The SMA 200 remains above as a potential resistance to bullish correction. While the SMAs suggests no directions, a play on support and resistance lines would suggest a possible bearish target of 1.3.
The US Non-Farm Payroll performed worst than expected. With the reality of a possible slowdown in the US economy’s growth sinking in, we may see more risk aversion motivated moves like Friday’s in the future.
President Mario Draghi, president of the European Central Bank mentioned that the economy’s outlook uncertainty has increased.
This is likely as a check on a report tells us that 11 euro zone countries are now in a recession!
France and Greece are holding elections this weekend and many investors are concerned that this may derail efforts to stem in the budget deficit crisis.
Keep a lookout for a pull back of equities to further confirm risk aversion.
Folks i started a new forum for us to discuss about forex and i hope everyone joins! It is brand new and hence i will be looking for active helpful folks to join and be possible moderators.
Related Forex Articles from the Koala Forex Training College.
- US Non-Farm Payroll and the EUR/USD
- Proper money management is a must
- Risk aversion in forex markets