Good day forex traders.
Welcome to a quick forecast on the EUR/USD. I have to apologize for the recent irregular updates. I am having some personal issues and I hope it will be over soon. I will be as strong as possible 🙁
In the previous forecast we note a bearish overtone. It appears that the fundamental environment has taken a turn south.
Looking at the EUR/USD daily chart above we do note a bearish trend with more potential for further slides. If the bearish pressure continues, we may see a test of the 1.26 support with a further extended bearish target of the 1.2520 region which I have drawn a line above.
From a fundamental point of view, concerns are mounting on pressing issues such as the Euro Zone budget deficit crisis and the US debt limit. With recent comments and reports suggesting a spread of economic contagion to Germany, the biggest economy in Europe, experts fear that a fallout has began. As for the US, apprehension regarding the failure to avoid automatic spending cuts is strong. There are concerns that it may hammer the US economy back to a dire state.
Trade safely and always use proper money management.