Good day to you.
Yesterday we witnessed a strong uptrend in the euro where that this time the euro and gold work in conjunction of a stunning growth showed. Yesterday the euro reached 1.3850, which was an important resistance and a bit of Euro strength was stopped. However today broke 1.3850 and 1.3880 was hit.
As 1.3850 to 1.3880 is one of the strongest support and resistance region many traders begin to identify their own profit and exit from long positions that caused the fall of the euro.
On the other hand, Goldman Sachs analysts in a Bloomberg article commented that the outlook for the US economy over the next 6-9 months may be negative and it may be “fairly bad” or “very bad”.
In the first case, American economic growth rate will be equal to 1.5-2% through the middle of 2011, while the unemployment rate would moderately advance to 10%. The second variant associated with 25-30% probability implies that the United States will once again slide to the severe recession.
With regards to the economic stimulant package of the US, differences exist between the republicans and democrats. With the recent resignation of key members of Mr Obama's economic team, there may be more complications brewing.
News from Japan also reported today that Japan summit G7 (8 October) no other intervention plan.
Towards the end of week, we have very important news, most notably is the NFP on Friday. Today and tomorrow be very careful of market volatility because many traders before the NFP may begin exiting their positions and may create extreme market movements.
From a technical point of view, euro in H1 is an ascending channel and until the euro is no longer in the ascending channel, just buy the floors as proposed. Do note the price retracement from Fibo 61% in the 1.3880-90. (above Picture).
Trade with open eyes and without feeling.
Have a nice time.
Masoud.
Masoud is a businessman and a Senior Forex Koala. Connect with him at our page on Facebook.
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