Good day forex traders.
Apologies for the late update. Am not feeling well. Hit the bed to recharged my mana! Work has taken a toil on me. I dream of a beach house from forex often! 😛
In the previous EUR/USD forecast by Masoud, he noted that risk aversion was still in the markets. The main trend remains bearish as long as the currency pair remains below 1.2625.
A forex gap did happen as speculated. Hey i definitely love it when my speculations work 🙂 A number of you folks speculated that too so good job to you!
SMA 20 = Bearish
SMA 50 = Bearish
The SMAs remain bearish although the SMA 20 ( Red ) which is an indication of short term price action has turned gentler due to the recent consolidations. The EUR/USD continues to hit bumps at the 1.2450 low of March 2009. If this fails, we may be looking at 1.2330 as an extended bearish target.
With the forex gap suggesting that investors were generally upbeat about the weekend developments, the party was short lived as reality kicks in. Costs to insure against a Spanish default rose together with interest demanded for Spanish debts.
The Federal Reserve Bank of Chicago President Charles Evans mentioned that he is basically supportive of additional stimulus. This lead to investors speculating of more easing. He particular he mentioned that an extension of Operation Twist would be useful.
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