EUR/USD Forcast 8 Oct 12

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Good day forex traders.

In the previous EUR/USD forecast we noted that the 1.28 might be a strong support. The SMA 200 was in the region and might add to the support strength. From a fundamental point of view, economic developments were worrying due to indications of slowdowns.

Technical Analysis

Looking at the daily EUR/USD chart above, we note that the currency pair failed to breech 1.28. As i mentioned during the previous forecast, this is a strong support and the SMA 200 is in the region and hence might act as a double support. I love it when my technical analysis works 

SMA 20 ( RED ) = Bullish

SMA 50 ( BLUE ) = Bullish

Both SMAs are still bullish and this indicates that the bullish trend may be in existence. A clue will be to see how the price action reacts at 1.3 when the market opens for the new trading week. Bullish target will be 1.32 while a bearish correction will probably target the strong support of 1.28 again.

Don’t miss the fundamental analysis,

continue on to TheGeekKnows.com for the fundamental analysis of the EUR/USD Forecast Weekly Review to understand more about the underlying market sentiments.