Good day forex traders.
Welcome to another EUR/USD forex forecast weekly review. This is a crazy weekend for me as i have a fully cramped schedule of stuff to be done. Ever open a cupboard and have all the stuff burst out due to over cramping? Probably that packed! LOL
In the previous forex forecast review we noted that the SMAs were indicating uncertainty. Fundamentally the outlook for the euro zone remains bleak. Opinions indicated that the euro zone is believed to be entering a mild recession.
Looking at the EUR/USD chart above, we note that the bearish pressure remains.
SMA 20 = Flat
SMA 50 = Bullish
As mentioned previously, the SMA 50 is acting as a support of sorts. I LOVE IT WHEN MY CHARTS WORK!! A failure of this will bring about the extended bearish target of 1.3. Any bullish attempt to regain lost ground would no doubt face 1.32.
The US Non-Farm Payroll came in better than expected and the unemployment rate held. This is a booster to the sentiments of an ever increasing pace of economic recovery for the US. Having said so this might have disappointed a few investors too who were counting on a new round of quantitative easing in view of sluggish economic pacing.
Over in the euro zone, it was reported that the IMF intends to scales back aid in the second aid package to Greece so as to limit it’s risk. Having said so it is generally believed that the situation will not be impacted greatly. Economic statistics from the euro zone showed that manufacturing and services contracted more than estimated and fourth-quarter GDP gross domestic product contracted 0.3 percent. Equities from the region were mostly red for the week as the bullish run might be over extended.
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