Good day forex traders.
It is a wet weekend for me and i hope your weather is fine. On top of that, i hope you made money from forex! A bagful of pips harvest is good any day 🙂
In the previous weekly forex forecast review of the EUR/USD we noted that the SMAs were not indicative of any sustained momentum. Fundamentally, economists and experts continued to warn of a global slowdown. The euro zone is not out of the woods too in regards to the budget deficit crisis.
Looking at the EUR/USD chart above, the week indeed gave no obvious momentum. I LOVE IT WHEN MY SMAs work 🙂
SMA 20 = bearish
SMA 50 = flat
The SMA 20 has crossed over to the downside. While this may indicate bearish pressure, it is important to observe if the SMA 50 which is an indicator of medium term possibilities turns bearish too. Uncertainty is high and the currency pair can very well go either ways.
We know that China remains one of the main drivers of global economic growth and it’s government continued efforts to slow down it’s growth has an inevitable effect on the global economies. The report of a fifth month of contraction for Chinese manufacturing is probably creating some risk aversion.
Oil continues to exert its pressure on the strained economies with it’s high price.
While the euro zone took care of Greece’s problem for now, the outlook remains dim and other euro zone countries such as Spain are facing complications too.
We have numerous important economic data this week ahead including the German Ifo Business Climate.
Related Forex Articles from the Koala Forex Training College.