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EUR/USD Forex Forecast Weekly Review 4 Mar 12

Good day forex traders.

Weekends are great! Great to rest. Great to do some sports. Great to do some chart reading! Yay!

In the previous EUR/USD forex forecast weekly review we noted that the currency pair had broken up above the 1.32 region. Both SMAs were pretty much bullish. Concerns regarding Greece were easing and confidence level towards Germany remained high. Nonetheless i mentioned that this bullish drive seemed rather dedicate and hence the risk of a breakdown remained high.

Technical Analysis

Looking at the EUR/USD chart above, we note that a bullish breakdown did occur. I LOVE IT WHEN MY OPINIONS WORK! 

SMA 20 = Flat
SMA 50 = Flat

With both SMAs flat now, we are in the uncertainty region. The currency pair can go either up and down and no one can be 100% sure. This is the beauty of forex 🙂 If someone says that his or her analysis is 100% accurate, look out for the crystal ball of forex!

It is important to note that the 1.32 is a historically strong support and resistance region and a trend line from the depths of 1.26 is in the area too.

Fundamental Analysis

The week was probably marred by negative developments and announcements throughout the global markets. 

In the US, the hopes of another round of quantitative easing became clouded as Mr Bernanke did not make mention of it. Investors were hoping that it would spur another rally of equities.

In an report the International Monetary Fund IMF cautioned that the global economy faces major downside risks due to the financial woes in Europe. However while Europe will enter a mild recession, the rest of the global economy would probably grow. Folks do take note that any depressed market conditions may further strain the budget deficit issues of Europe. This week, Greece’s rating was further cut too by various ratings company to the realm of “selective default” or the likes of it.

Not out of the woods indeed!

Trade Safely.

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