Good day forex traders.
Almost the end of the week and i hope you have made a big bagful of pips!
In the previous EUR/USD forecast by Masoud, he mentioned that as long as the EUR/USD is below 1.2625, the main trend is bearish. Fundamentally, the drop of the oil price suggested a retreat of economic growth. Spain’s situation remained critical.
The EUR/USD has bounced off the region of support as i mentioned. I LOVE IT WHEN MY CHARTS WORK 🙂
SMA 20 = Turning Flat
SMA 50 = Bearish
Due to the recent bullish correction, the SMA 20 is applying it’s breaks. The currency pair is now at a support and resistance region of 1.26. As Masoud has mentioned and also i believe, we need to see a close above 1.26 first before any further bullish momentum can be expected.
China has reduced it’s interest rate in a bid to stimulate growth. Long time readers would remember me writing about China’s tightening and the subsequent fall in sentiments? Now we have the reverse! We must always take note that China is a major participant in the global economic growth party and hence it’s actions will bring about reactions in the markets.
The European Central Bank has decided to keep the interest rate for now although it was reported that there were votes to cut the interest rate. ECB President Mario Draghi mentioned that the ECB stands ready to take action if required.
Speculations of a rate cut next month is strong.
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