Good day forex traders.
Fourth day of the trading week and soon it will be the weekends! I hope the forex markets are treating you well.
In the previous EURUSD forecast we noted that trading was in a tight range due to apprehension. Any bearish pressure might see a test of the 1.22 immediate support.
From a technical point of view, the EUR/USD is currently testing the support of 1.22. Do always remember that support and resistance lines are never a single pip. Should the currency pair close decisively below 1.22, the extended bearish target of 1.2 will be open.
Market sentiments are probably negative as the FOMC meeting minutes revealed no concrete plans regarding economic stimulus. Investors were hoping for another round of quantitative easing and were hence disappointed. Worldwide, various economies are slowing down. A China GDP release is due tomorrow and it is predicted to show a slowing Chinese economy. Do be on a lookout. China is seen as many as a global economic growth driver. If China slows, many other economies will be affected.
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