Good day forex traders.

I mentioned in the EUR/USD weekly forex forecast that a region to look out for would be 1.3 – 1.31. Being a historical support and resistance region and also the location of the SMA 50, we may see some resistance there. If this fails, we may be seeing a bullish momentum.

Technical Analysis

Looking at the EUR/USD daily chart above, we note that the currency pair did test the SMA 50 and retraced downwards.

I LOVE IT WHEN MY CHARTS WORK!!

Bearish target should watch out for the SMA 20 which is around the 1.28 – 1.285 region. Any bullish momentum would no doubt need to conquer the SMA 50 first.

Fundamental Analysis

Trouble brews as the negotiations for a Greece solution enters into a statement. European finance ministers were urging bondholders to provide more concessions for Greece. The average of 4 % demanded by investors were urged by the European officials to be further reduced to below 3.5%.

While reports were stating that the extra costs to the bondholders might be worth it compared to a default, it was reported that a number of investors were not impressed and probably preferred the profits from a full repayment.

The perceived lack of an agreement probably caused risk aversion.

Trade Safely as many important economic data is due tomorrow such as the German Ifo Business Climate and US Pending Home Sales.

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EUR/USD Forex Forecast Review 24 Jan 12

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