[FONT=verdana][B]Simultaneous Release at
TheGeekKnows.com [URL="http://www.thegeekknows.com/"]Learn Forex Trading[/URL] and read exclusive [URL="http://www.thegeekknows.com/"]EUR/USD[/URL] Reviews.
Good day forex trading koalas.[/FONT]
[FONT=verdana]In the previous EUR/USD Weekly Review, we noted that from a technical perspective the short and medium term SMAs were displaying conflicting indications and hence the currency pair might continue to range. Furthermore, the SMA 200 which is a long term indicator laid just below the price action and might act to cap downside moves. Fundamentally, the Euro Zone continued to be plagued by confidence issues and equities were taking a hit. S&P's downgrade of the US rating might complicate matters.[/FONT]
[FONT=verdana]Looking at the EUR/USD chart above, as mentioned in the previous EUR/USD weekly review, the currency pair continued to range without any sustained momentum. Typical of conflicting SMA indicators. The SMA 200 also continued to function as a region of support for the currency pair.[/FONT]
[FONT=verdana]With both SMAs flat, it is still premature to consider any possibility of a long term sustained momentum. A closer look at the EUR/USD chart suggests that the currency pair range may be narrowing between the two sloping trendlines. If indeed so, we may be seeing a squeeze induced breakout soon if the trendlines continue to provide the respective support and resistance. It is important to note that the SMA 200 continues to lie just under the current price action region.
[B]Continue on to TheGeekKnows.com for the [URL="http://www.thegeekknows.com/2011/08/eurusd-weekly-review-7-aug-11_14.html"]fundamental analysis of the EUR/USD Weekly Review[/URL] to understand more about the underlying market sentiments.[/B]
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.