EUR/USD Daily Review 17 Nov 11

Good day forex traders.
How is your trading week so far? Hope it is green with pips 🙂 Yesterday i spoke about the AUD/USD and response was great! Thank you for your support. I will definitely try to do more of that when time permits.
Today i wanted to talk about the EUR/USD again.
Looking at the EUR/USD chart above, we note that the currency pair is going for a test of the 1.34 line. While a historically strong support and resistance region, be careful of any adverse fundamental event that may puncture through this line. If this line holds, we may have the EUR/USD recovering back to 1.36 and then 1.38. A word of caution is that while the SMA 20 is now downwards, the SMA 50 remains flat and this suggests that a sustained momentum may not be a possibility yet.
Fundamentally, the situation remains fragile. Fitch Ratings was reported mentioning that US banks may face a serious risk to their credit worthiness if the Euro Zone budget deficit crisis further escalates. This together with an upcoming bond sales by France and Spain is affecting market sentiments as apprehension ensues. 
Trade Safely.
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