Good day forex traders.
With a new trading week just hours away, i hope you are geared up to have a green week of pips!
In the previous EUR/USD forecast we noted conflicting SMA signals. In view of the Greek elections, no one can safely predict the possible trend. Depending on the outcome, we might be setting up for a bullish, bearish or consolidating scenario.
Solution : ProRealTime
A short term bullish momentum developed post Greek elections and almost tested 1.28. Having said so bearish pressure was strong and the currency pair is now below 1.26.
A break above 1.26 will probably see the EUR/USD head towards 1.28 while bearish resumption will target 1.24.
The situation remains the same and the markets are simply too tired of the dragging Euro Zone budget deficit crisis. With Spain fast becoming a potential troubled zone, the frequent disagreements between the Euro Zone leaders are causing much apprehension. An Euro Zone economic summit is due this week and it will probably be closely monitored.
Across the Atlantic, the US printed weak economic figures and there are fears that the drag created by the Euro Zone budget deficit crisis is taking it’s toll.
Both the Euro Zone and the US make up about 40% of the world’s total trade and hence any weakness will be far reaching globally.
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