EUR/USD Forecast 11 June 12 9



 

Good day forex traders.

 

How was the trading week? I hope forex was good to you. Next week will be a very busy week for me and hence i will probably trade less. With Greece’s vote coming soon, i guess i won’t be missing too much either.

In the previous EUR/USD forcast we noted continued bearish indications from our SMAs. Nonetheless the previous lows in the region might serve as a support. Fundamentally, speculations of a Spain bailout was strong and the US prints a worst than expected US Non-Farm Payroll.

 

EUR/USD bounces off low

 

Technical Analysis

Looking at the EUR/USD chart above, we noted that the region did serve as a support. I LOVE IT WHEN MY CHART WORKS! Sometimes i cannot tolerate myself for shamelessly praising myself. HA!

SMA 20 = Bearish

SMA 50 = Bearish

The currency pair tested 1.26 and eased off pretty far. Should bearish momentum resumes, we will be testing the region of 1.2330 – 1.2450 again.

 

Fundamental Analysis

This weekend has been an exciting one so far. Two crucial developments happened and it will be crucial to monitor the effects when the markets start for the week.

Spain has announced that it will be seeking international aid to revitalize it’s banking system. The bail out is reported to be as much as $125 billion US dollar and this is the largest economy of the Euro Zone so far to fall to the Euro Zone budget deficit crisis that started with Greece. While many investors fear the implication of a bail out of the fourth largest economy in the Euro Zone, many investors were also relieved that action is being taken.

On a side note, reports mentioned that Ireland is seeking to renegotiate it’s terms after Spain’s proposed terms seems much favorable.

The second crucial development is concerning China. Being the second largest economy in the world, China’s economy performance affects the global markets. It was reported that China’s May exports and imports increased at more than double the rate estimated by analysts. This suggests that trade has not been affected adversely.

Anyone smell a forex gap ahead? We shall wait and see.

Trade safely.

 

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  • http://thegeekknows.com/ The Forex Koala

    While no one can predict 100% in forex, it does not harm to speculate eh? 😛  So tell me .. do you think there will be a forex gap?

  • http://thegeekknows.com/ The Forex Koala

    Everyone .. please join our mailing list !!

  • Elmar Votri

    Yes! due to such notices as this a forex gap is almost inevitable! I´ll waint for the eurusd reach 1.2620 or around  this week, and whith a good technical setup showed up, I´ll look for shorting confirmation entries there!  Nice article. thanks.

    • http://thegeekknows.com/ The Forex Koala

      thanks :) Glad you like it.. all the best for your trading !

    • http://thegeekknows.com/ The Forex Koala

      Did you nail it ? :)

  • http://www.facebook.com/george.mccall.5 George McCall

    Yes a gap up must be in the air. The question is when the gap will be filled. Personally I follow the Steve Nison school of thought and view gaps as establishing areas of support or resistance. The gap will only be filled if the support or resistance is tested. He expresses no opinion as to whether gaps are filled. Consequently on that basis I tend not to trade the gaps though will use the levels to define support and resistance.

    • http://thegeekknows.com/ The Forex Koala

      Gap up indeed :) You nailed it !

  • Joel

    I’m learning a lot from your articles and the comments people leave. Thank you for providing such articles. VERY helpfull. Greetz Joël

    • http://thegeekknows.com/ The Forex Koala

      Thank you for your kind words :) indeed I have to thank the people leaving their comments too. My hope for this website is a place for all to share their learning with each other.
      Hope to see you often :)