Forex
EUR/USD Bearish Momentum Gains Amid Thin Volume
US markets are closed due to Hurricane Sandy, but the EUR/USD pair continues to trade on thin volume. The bearish potential for the pair is increasing as risk aversion favors dollar gains across the board.
The local share markets and US futures are also down, adding to the negative sentiment. This morning, the EUR/USD trades steady below 1.2900, with a short-term resistance around the 20-hour SMA. The hourly chart shows that this moving average is heading lower, indicating bearish momentum.
The main risk event in this session will be Spain, as Prime Minister Rajoy is set to give information about the country's bad banks at 17:00 pm local time.