Good Monday blue koalas!
I decide to be kind for once and spare all my bluish grumblings
The EUR/USD recovered slightly today and tested the line of 1.3940 +/-.
Our market sentiment clue the S&P 500, is bullish today. Raising above the line of 1080.
Oil remains around at $72+. Oil can be an important clue to the global economy and i will watching close if it breaks down below $70.
Gold is currently enjoying a rally and is near $1100. This raise in value may be sparked by risk aversion. Gold is a timeless currency and is often in demand in times of stormy financial weather.
The Greece problem seems to be causing a fallout of sorts. Today, a report stated that investors are pulling cash out of Europe at a record rate. To understand the market, we must understand the investors. Having troubled companies is already a cause for concern but having troubled countries? Investors definitely do not want to risk unnecessarily. With less demand and more supply for the EURO, we know the drill. The value drops. We also need to remember that days ago reports surfaced about Spain too.
The US manufacturing sector expanded at a faster rate than expected and the S&P 500 apparently benefited from it. However do monitor closely if the general negative sentiment overwhelms.
I spoke earlier about gold’s raising value. Likewise, i will be watching closely as exceptional demand may indicate that risk aversion in the market is strong and folks are digging in with gold.
From a technical point of view, the currency pair seems to suffers from a big dip after a few days of slight bullish momentum nowadays. Therefore keep this in mind.
We have releases such as German Retail Sales and US Pending Home Sales tomorrow. Both are important and let’s stay tuned to observe for signs of a further fallout.
Bullish relief may bring the price back to 1.3940/1.4000.
Further bearish momentum may test 1.3880/1.3800 next.
Ah i have a long day at work tomorrow and i only clocked 6 hours of sleep last night! Koalas are never meant to sleep so little:P I am trying hard to have an early date with sleep tonight and do wish me all the best :p
Take care and trade safely!
Read more Forex Articles and Views by The Koala at www.thegeekknows.com