The Euro Forex

The euro is also burdened by the debt and fiscal troubles that have led to credit rating downgrades of some Eurozone states. Fortunately for the euro, there is no unified credit rating for the Eurozone. Nevertheless, the euro may get hit hard from the US downgrade, as the traders might get scared away by the possible new series of rating reductions in Europe. If the news for the United States are bad, the news for the Eurozone aren’t any better. In addition, the technical charts show that the EUR/USD currency pair is still consolidating. All this suggests a very uncertain future for the Forex pair with a high chance for a range-bound market.
Most probably, the Monday trading session will open with an wide upward gap on EUR/USD and the whole day will be spent filling it. In case the pure speculative trading prevails, the rate may be pushed to rally either up or down. If that happens, the technical analysis suggests the next resistance level near 1.4900 and the next support level near 1.3830.