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Good day forex trading koalas!
It is the second day of the week and lets harvest some pips.
Yesterday, we noted a report mentioned that the economic confidence in Europe worsened in May. The Euro Zone is really not out of the crisis yet and hence budget cutting measures done by countries like Spain and Italy might be a sign of budget problems to investors.
Looking at the EUR/USD, we are hitting the H4 trendline. The question remains. Will the trendline hold?
The S&P 500 is rather flat for now. Yesterday was a bank holiday for the US.
Oil is around $75.
Gold continues to climb and is now trading around $1224. This suggests demand for the precious metal. A possible indication of risk aversion.
Just before the EUR/USD turned bullish moments ago, we had a mainly bearish day. The Euro Zone’s unemployment rate is now at 10.1%. Employment being one of the main indicators of the economy, is very much monitored and analyzed by investors. Furthermore with the concerns regarding the further spread of the budget deficit crisis, the sentiment towards the Euro is probably at a great low. There are talks that the EUR/USD “fair” value is 1.2.
The Bank of Canada raised its key interest rate today. Canada becomes the first Group of Seven country to do so and this is an optimistic sign that the recovery is picking up. ( With the exception of the “troubled” regions )
Tomorrow brings us a number of economic releases including the US pending home sales. Home sales can be a good economic stimulus and hence it will be closely monitored,
From a technical point of view, the H4 trendline remains to be defeated. The current sentiments simply do not warrant much possibility of a strong bullish move. If so we may be looking at 1.2400 next. Should the bears take over the stage again, 1.2200/135 may be next.
I was so busy at work today that i forgot momentarily the day of the week. No joke. Does this happen to you? I am kind of worried that perhaps i am aging and my brain cells are getting lesser and lesser LOL oh my oh my oh my.
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