Good Monday forex trading koalas!
Are you blue today? I hope not. Who heard of a blue koala before anyway?
Yes week we ended on a bullish note, testing the 1.38 region. While gold and commodities suggest that the recovery is picking up, we understood that caution was to be exercised. Sentiments can be quite a flirt at times and we definitely do not want to be on the wrong side when the flip happens.
Looking at the EUR/USD chart above, the strong line of 1.38 held it's ground for now. The currency pair has since eased off and is now testing the line of 1.3680.
The S&P 500 hangs around the 1140+ region.
Oil remains above $80 for now and gold is still elevated above $1300. As gold normally benefits from demand during times of uncertainty, one must consider the real nature of this price boom.
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The US pending home sales came out much better than expected and we are probably seeing some take up of the US Dollar for now. As the US housing market is a sensitive issue for now, investors may tend to react emotionally. After all, foreclosures are still happening and the property prices are dulled.
The Chinese premier mentioned that China supports a stable euro. European bonds holdings would not be reduced and in fact China plans to buy Greek bonds once available. While this is a good boost for the euro, it has yet to be translated on the charts. This is the beauty of forex. A seemingly euro positive development having no effect due to the market focus on other issues.
Fed chairman Bernanke is due to speak later and hence be careful of unexpected spikes. Tomorrow economic menu brings us important data such as the Euro Retail Sales and US ISM Non-Manufacturing PMI.
Trade Safely.
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I clocked less then 6 hours of sleep last night and now i am suffering from the effects. I see sleep as a hindrance to my productivity and how i wish humans do not need sleep. LOL
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Related Forex Articles from the Koala Forex Training College.
- Gold is a popular investment during times of uncertainty
- Housing activity is a stimulant for the economy
