Good day forex traders.
Welcome to another forex forecast of the EUR/USD. With Valentine’s day just around the corner, i hope everyone out there spend some quality time with their loved ones 🙂
In the previous EUR/USD forex forecast we noted that the 1.32 region continued to put up a tough resistance. While the SMA 20 was bullish, we had yet to see any indications from the SMA 50. The Greek budget deficit crisis continued to plague the markets but the better than expected US Non-Farm Payroll did ease some negativity off.
We note above that the EUR/USD had fallen back below 1.32 which is a strong support and resistance region.
SMA 20 = Bullish
SMA 50 = Flat
With the SMA 50 still flat, further observation must be done before the possibility of further bullish momentum can be concluded. The SMA 20 is rising rapidly and it will soon meet the currency pair. Watch out for it’s role as a possible support.
The Greek government reached an agreement on the implementation of austerity measures required for further financial aid. While this created bullish momentum, the reaction of the Eurozone finance minsters brought rain onto the parade. They require that the austerity measures be approved by the Greek parliament first before going forth with the financial aid progress. In the meanwhile Greece is facing political problems as ministers were reported to have quit due to their objection of the austerity cuts and strikes are happening. Papandreou was reported as saying that in order to not sacrifice everything, they have to sacrifice a lot. Bankruptcy means chaos.
As the global markets and currencies are still at general being steered by the Euro Zone budget deficit crisis, close monitoring of the result of this parliamentary vote is critical.
Do be careful of other economic data events too such as the German ZEW Economic Sentiment.
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