Good day forex traders.
It is midweek and i hope you are on track for a week green with pips! In the previous EUR/USD forecast we noted that the currency pair had been sliding lower. Tops were getting lower too. The fundamental environment remained depressed due to the Euro Zone budget deficit crisis.
Solution : ProRealTime
Looking at the EUR/USD 4 hourly chart above, we note that the currency pair is now below the immediate support of 1.29. As mentioned the currency pair is sliding lower and it is still doing so!
The EUR/USD is now testing the support turned resistance as the bulls struggle to push the currency pair up. The fundamental situation is bias towards risk aversion and hence this is a challenge. The International Monetary Fund IMF mentioned that European banks may need to sell as much as $4.5 trillion in assets through 2013 if commitments by policy makers to curb the fiscal crisis fail. This may trigger an economic downturn and hence weights down heavily on sentiments at the moment. This can be seen in the above chart as risk aversion drives USD demand.