Good day forex traders.
Listening to ” Wonderful Tonight ” by Eric Clapton gives me all the love and i hope you are feeling wonderful from all the harvest of pips! Do remember that forex is not about earning money fast. Most successful traders i have seen do it slow and consistently.
In the previous EURUSD forecast we noted that both SMAs were bearish and we might expect a bearish momentum should nothing fundamental change. Despite the encouraging GDP growth from China, the currency pair did not climb much thus further revealing the depressed nature of the Euro currency.
Looking at the EUR/USD daily chart above, we note that the 1.2330 line served as a resistance and the currency pair is now below 1.22. I LOVE IT WHEN MY S&R lines work 🙂 These are a result of my koala eyeballing through years of EUR/USD charts. Hope it helped you there.
SMA 20 = Bearish
SMA 50 = Bearish
With the 1.22 resistance breached, i would be on a lookout for the 1.2 extended bearish target. First order of the day though would be to confirm that the currency pair has cleanly left the 1.22 resistance region.
Spain continues to face complications as 10 years bond costs rose above seven percent, a figure which sent countries like Greece down the path of a bailout. Spain’s plan to provide emergency loans to regional administrations tight on cash will deplete 12 billion euros from the Treasury. Investors are worried that this will increase the debt holdings and further worsen the situation.
Over in the US, unemployment remains a threat as indicators such as unemployment claims do not suggest a receding trend. The unemployment rate remains high above 8%.
The global markets remain fundamentally weak although short term rallies are often seen due to sentimental reasons. It is a complicated situation and hence one must be very careful when trading so as to not trade against the sentiments.
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