Good day forex traders.
It is almost the end of the week and the current strength of the trend is indeed obvious on the charts. In the previous EUR/USD forecast by Masoud, he noted the techincal bearish indications and believed that the bearish target of 1.2480 was still possible. His target was derived previously from a technical triangle squeeze.
After the test of 1.28 region, the EUR/USD crashed towards the 1.26 support and cut right through it.
SMA 20 = Bearish
SMA 50 = Bearish
The SMAs continued to show no let up on the bearish indications. With the currency pair under 1.26, a full candle close will indicate further possible dips. An extended target of 1.24 may be a possibility.
The European summit led to no concrete solutions for the Euro Zone budget deficit crisis, in particularly Greece. Should Greece exit the Euro Zone, uncertainty will probably strike as there were no consideration for an exit during the formation of the Euro Zone.
It was reported that Spain’s bond yields were approaching the level which pushed Greece, Ireland, Portugal to bail outs. This is crucial as Spain is a large economy in the Euro area and hence any implications will be wide.
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