Good day forex traders!
I wanted to touch on the EUR/USD today as i feel that what is happening is indeed crucial. Many readers do not understand what is happening and hence i wanted to provide a simple overview and outlook, forex koala style!
In the previous EUR/USD forecast review we noted that France and Greece were having elections over the weekend and it might affect sentiments in the markets.
Looking at the EUR/USD chart above we note the obvious forex gap. The currency pair attempted to cover the gap and fell short just pips away before falling to bearish pressure.
SMA 20 = Bearish
SMA 50 = Turning Bearish
The SMA 20 is showing bearish possibilities and this is inline with the chart candles. Should the SMA 50 goes fully bearish too, we may be looking at a possible bearish momentum.
Immediate target for any bullish recovery would be the closing price before the weekend forex gap. Any extended bearish target will probably be the support region of 1.28.
Investors are very concerned.
Both France and Greece saw austerity adverse politicians elected. There are already talks and speculations regarding challenges made to the current austerity commitments and many see this as a further indication of the lack of political will of the Euro Zone to overcome this financial crisis.
It was further reported that the European Commission is already revisiting growth policies in view of the new political developments. The markets do not look upon political divide with favor and hence the risk aversion in the markets.
Staying abreast with political developments in the Euro Zone will probably be key to determining possible directions.
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