Good day forex traders.
I hope you are enjoying the newest Economy news segment! These are very relevant articles for our trading of the EUR/USD and we can definitely gain some insights into the fundamental situation. For readers missing out on this, sign up for our free mailing right now.
In the previous EUR/USD forecast we noted that the 1.3 line remains pivotal to the currency pair’s price action. The RSI on the daily suggested that the bearish pressure was weakening.
Looking at the daily EUR/USD chart above, we note that a forex gap happened. Again as I said over the years, forex gaps can happen anytime and hence ensure that proper money management is always there.
Despite a bearish dip, the EUR/USD had climbed back towards the 1.3 line. I love it when my chart works! 1.3 remains pivotal to the price action indeed. A look at the RSI suggests again that bearish momentum may be fading.
Looking at the Cyprus development, as per the articles that I have been curating, the general situation remains that there is no easy solution and that pressure is intense. A failure to obtain a bailout soon will result in a cut off of access from the European Central Bank emergency funding. Earlier efforts to obtain funding from Russia had failed. A highly unpopular intention to tax bank deposits in the country was also met with stiff opposition. As this is an ongoing development, we need to monitor closely. Do join our mailing list and read the recommended relevant articles.
Across the Atlantic, the US has been enjoying a relatively better economic situation versus the Euro Zone. The recent few US Non-Farm Payroll reports gave traders an indication that the employment market is improving and the US equities are performing too. Regardless, I would want to caution everyone that the US debt levels remain extremely high and hence presents a risk.
Folks if you have not participated in our poll for the price of the EUR/USD come April, I would like to invite you to participate in it! The current lead is 1.3100s. What do you think? Voting closes soon!