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Risk aversion is the favor of the day!
I said the other day that the currency pair seems to follow a pattern of a major bearish movement after a couple of days of slight bullish movement these days and it appears to be playing this out again
The S&P 500 has fallen below 1100, indicative of poor sentiments.
Oil has fallen slightly. At $74+ now, probably a result of a strengthening US Dollar.
Likewise for gold, it values at $1085+ now. Similarly a possible result of the stronger US Dollar.
The Greece problem is hitting the fan!
With strikes been planned, recent plans to reduce deficit may be hampered. Investors do not like a troubled country. With strikes on-route, productivity of the economy may be affected resulting in a further breakdown. This may not be the kind of place investors want to be in!
Furthermore, i mentioned sometime back that Spain may join in the troubled club. Indeed, Spain and Portugal are receiving increasing amount of limelight these days with regards to their deficit.
Although the European Central Bank President Trichet said he is “confident” that Greece is moving in the right direction to cut its deficit, the strikes may disrupt the plans and investors are apprehensive.
On the US side, unemployment claims were more than expected. This does not go well since the US is already facing a problem with unemployment. Tomorrow’s margin call Friday event, the non-farm payroll will be a release to watch out for. FOMC Member Hoenig is also due to speak later on too and hence be careful of spikes.
While 1.3800 may prove to be a strong technical support, the risk aversion may be strong and if it fails, stop loses may be triggered, opening the way for more bearish drop.
If bullish pressure returns, we may test 1.3880.
Should the bearish momentum overcomes 1.3800, 1.3740 may be next.
My migraine is getting crazy! I had it every morning from Monday to Thursday. If i get it tomorrow again, this week will be remembered as “Migraine Week ! “
Did you see the TheGeekKnows.com Annual Koala Report 2009 ?
It had been a great 2009 and i am very excited about 2010. I do not know about you, but i have really grown very attached to this koala site of mine and the koala community. The best part is, although i stay up to 3am at times to do the articles here, i am never tired! When you are doing a work of your passion, you never have to work again
Trade safely and do have proper money management. ( YES TOMORROW IS CRAZY MARGIN CALL FRIDAY)
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