Good day forex traders.
Today is the middle of the week and i hope you have already bagged a harvest of pips! Now do remember that forex trading is never about getting rich overnight and hence even 1 pip of profit is good for the geeky forex koala.. me!
In the previous EUR/USD forex forecast review we noted bearish pressure. Uncertainty was present and Spain had reported negative economic data.
Looking at the EUR/USD chart above, it is apparent that the bearish pressure succeeded and we are now on our way to the extended bearish target of 1.3. Take note that the SMA 20 had turned bearish.
We are currently seeing a positive stance across many major equities markets and this is probably attributed to the US Federal Open Market Committee’s minutes of better outlook for growth. Together with the improving job market conditions in the US, investors are probably increasing their weight on US equities and indirectly the US dollar.
In contrast, the Euro Zone remains pale in outlook. Earlier the UK reported an increase in jobless claims, suggesting that the economy is not picking up as expected.
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