Good day forex traders.
Welcome to another quick update of the EUR/USD.
In the previous EUR/USD forecast we noted that the currency pair was drifting lower below 1.3. This was probably due to the uncertainty of the Euro Zone budget deficit crisis. Bonds auctions of Spain and Italy gave mixed results and hence sentiments remained poor.
Solution : ProRealTime
Looking at the EUR/USD 4 hourly chart above, the currency pair continued to show weakness. It is now clearly below 1.3 and if the bearish momentum continues, 1.28 will be next.
There is a weak technical triangle setup as seen above. Do keep a look out in case of any breakout.
Protests broke out in Spain as cuts loom near. Investors do not like such issues and hence apprehension increased. The Czech president was also reported making comments that a Greece departure will not cause major issues. He said that Greece is a victim of the monetary system. Needless to say, talks about a departure from the Euro Zone probably increased uncertainty in the market.