Good day forex traders.
It is March! Time flies and soon the first quarter of the year will be over. This month will be an exciting month for forex trading. HA! I think forex trading is probably exciting every month! One wrong excessive risky trade and there goes your account. MARGIN CALL!
In the previous EUR/USD forex forecast we noted that the SMAs were bullish. Having said so, the weekly chart suggest that the currency pair is at the top of a bearish channel.
The weekly channel did seem to hold as the currency pair dives right below the 1.34 region. The SMA 20 seems to be acting as a support of sorts for now. With this move, once again the 1.34 region is now a strong resistance.
In a testimony to lawmakers yesterday, Mr Bernanke, chairman of the US Federal Reserve gave no indication that another round of quantitative easing was being considered. The stance that the US economy probably requires a low interest rate environment right into 2014 probably added to the bearish sentiments. Many investors were speculating on another round of quantitative easing to stimulate economic growth and the lack of indications brought about disappointment.
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