Good day forex traders!
How is your good o Tuesday coming along? In the previous EUR/USD forecast i mentioned that the bearish sentiments remain. 1.24 might be targeted. Both the US and the Euro Zone makes up 40% of the world’s trade and hence any weakness coming from these economies will make an impact on the world.
Solution : ProRealTime
Looking at the EUR/USD hourly chart above we noted a small forex gap at the start of the week. Nowadays it is becoming common with all the weekend meetings etc. Always be prepared for the unexpected in forex! That is the best advice this old koala can give to you 🙂
The currency pair made a lower low moments earlier and we may very well see 1.24 soon if this continues.
Fundamentally, the Euro Zone remains in trouble. Nothing new. Cyprus becomes the fifth euro zone country to seek a bailout. Hey makes you wonder whose next exactly eh?
Over in the US, automatic cuts scheduled to kick in to reduce debt are being considered for a delay. Talk about kicking the can down the road? American style! The US debt is enormous and the day the market focuses on it will be the day the cat is let out of the bag.
As Masoud mentioned and i agree, as long as the current Euro Zone budget deficit crisis receives no clear solution, the possibility of a long term bullish rally of the EUR/USD is low.
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