Good day forex traders.
Welcome to another update of the EUR/USD. I hope you had a good trading week.
In the previous EUR/USD forecast we noted that the currency pair was experiencing a bearish slide. The fundamental situation was negative due to the ongoing issues of the Euro Zone.
Looking at the EUR/USD daily chart above, we note that the bearish slide remains but it is now facing the immediate support of 1.27. ( red line ) Should this line fail, the next support will probably be the 1.26 line. If you note the two spikes below the bottom red line, this region is the 1.2520 support. Probably an area to look out for too should the bearish slide continues.
The world’s economic stage is currently plagued by a number of issues.
The Euro Zone budget deficit crisis is still threatening to bring turmoil to the various markets. Spain has not decided on a bailout and Greece continues to experience difficulties on meeting bailout targets. Furthermore recent economic data from the Euro Zone seems to suggest that Germany is starting to be affected by the ongoing crisis and hence investors are concerned.
The US is on a path to automatic spending cuts and tax increases should an agreement by lawmakers fail to be reached. This is bringing apprehension to the market as it is believed that a trigger of this will bring the US back to a recession.
Continue to monitor for any adverse events.