Masoud EUR/USD Forecast 22 Apr 13





Hello koala king and folk.

Good day to you.

Slovenia is facing a severe financial crisis. Banks are facing a strain on funding and with this announcement from the Organization for Economic Cooperation and Development, rumors sparked of the country’s bailout.

China’s economic growth rate in the first quarter of 2013 is lower than expected and lower than the first quarter of 2012. The world’s second largest economic power in the first quarter of this year clocked a growth rate of 7.7 percent. Meanwhile, most statistical agencies predicted 8 percent economic growth for China in the first quarter of 2013.

Commission for Europe, Europe’s Central Bank and the IMF agreed that the Greek government with more than 15 thousand state workers to adjust as part of the austerity plan, had faced strong opposition in the early months of 2012. However the opposition reduced eventually and the government reached its target.

IMF predicted a world economic growth rate of 3.3 percent in 2013 and 4.0% in the next year. The IMF in a report released on Tuesday warned of the wealthy nations deficit and announced a number of these countries have to deal with a challenging deficit and debt. These countries should take necessary measures to reduce its deficit. However economic experts view the austerity programs as inefficient. The IMF also expressed concern of the easing monetary policy in Japan and America and hope these countries take measures to reduce their deficit in the future.

German parliament on Thursday upheld a high majority of the Cypriot financial rescue plan. The risk of contagion spread should Cyprus goes bankrupt is noted and it may lead to more bailout programs. The Cyprus government committed to economic reform in the country in return for aid from Europe and the International Monetary Fund.

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Technical perspective:

As you can see in the above picture, the EUR/USD after climbing above 1.30 returned again to test the support and resistance region of 1.3. If the EUR/USD close below 1.30, the first target would be 1.27. On the other hand, if the euro against the US dollar close above 1.32, the first target is 1.35.

Have a nice time.

Masoud.

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