Good day forex traders.
Welcome to another forex forecast review of the EUR/USD. We are experiencing new developments to the currency pair and how have you managed it so far?
In the previous forex forecast review we noted that the SMAs remained flat. Uncertainty is high. Fundamentally we were getting an similar outlook as both positive and negative comments were made regarding the Greek deficit crisis by European Union officials.
We note from the EUR/USD chart above that the currency pair had broken out of the 1.32 resistance region.
SMA20 = Bullish
SMA50 = Turning Bullish
With the SMAs indicating a possible bullish trend, we may see further climbs if the market conditions remain. Do note however that the price action is approaching the SMA 200. It is an indicator of long term trend and usually a strong support and resistance.
Keep a close look if the EUR/USD falls back below the 1.34 region. A bullish extended target would be right about the SMA 200 which is the region of 1.3600.
With the concern of a Greek default easing due to the agreement of a second bailout package, the euro currency is rallying due to increased demand. Positive sentiments are increasing too as Germany’s economy remains resilient despite the troubles plaguing the euro zone.
Regardless I would urge everyone to be cautious towards this bullish momentum as it is probably a very delicate rally. Any signs of a complication may possibly derail the north bound train. Furthermore there are also other strained euro zone countries too such as Spain and Italy.
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