Good day forex traders.
In the previous EUR/USD forex forecast review, we noted that the SMA 20 acted as an immediate resistance. 1.28 might be the next target. Fundamentally the new sale of shares by Italian Bank Unicredit was probably causing risk aversion as investors speculated that European banks might need to raise capital.
Looking at the EUR/USD chart above, we note that the currency pair did reach 1.28. I LOVE IT WHEN MY CHART WORKS! The bearish momentum is strong and hence close monitoring should be applied to the 1.28 support.
Fundamentally the German Retail Sales turned out to be worst than expected and investors fear that the euro zone economy is further deteriorating. Furthermore in comparison, the US ADP Non-Farm Employment Change turned out to be much better then expected and sentiments towards the US economy probably became favorable.
Among the economic data due tomorrow, comes the Euro Zone Retail Sales and the US Non-Farm Payroll. Both are crucial indicators of their respective economies and hence do monitor closely.
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