Good day forex traders.
How was your day today? If you are green for the week, great for you! Do remember to protect your profits. If you are red, please do not trade emotionally and engage in excessive risk.
In the previous EUR/USD forecast we noted a consolidation of the currency pair due to possible apprehension. The G20 summit did not impress the markets.
Looking at the EUR/USD chart above we noted that the currency pair is currently bearish. It is now testing the resistance of 1.26. If this fails, we may be looking at a short term target of 1.2550.
Post G20 summit, the German chancellor was reported to be against any direct purchase of sovereign debt as a means to ease the region crisis. This probably had an impact on the sentiments as investors were disappointed in the outcome.
The US Federal Reserve announced an extension of Operation Twist. This is done to aid the economy and to spur growth. The growth forecast was cut and this also added to the disappointment of the markets.
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