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.
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.
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.
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