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Good day forex trading koalas!
Today is a day of risk aversion and everyone is risk averse due to adverse conditions
rhymes? HAHAHA Jokes aside, indeed today is probably a risk aversion day. In fact as we noted in yesterday’s review, the speculations regarding the possibility of another round of quantitative easing probably took it’s toil on the currency pair.
Looking at the EUR/USD chart above, we are pretty technical today as the top and bottom so far are lines indicate by my reviews. In view of this, IT IS TIME TO BOAST .. I LOVE IT WHEN MY CHARTS WORK. Ok let me contain myself.
A quick look at equities around the world shows red for most of the indexes. Sentiment is poor.
Oil took a hit but is currently still above $80. ( Although it dipped below $80 )
While gold is a popular choice of investment when it comes to tough times, it is probably dragged down by the stronger US Dollar for now.
Poor data + upcoming Fed announcement = risk aversion.
To start things off, the French Industrial Production came out worst than expected, prompting investors to question the recent recovery of the Euro Zone.
Besides the upcoming announcement soon, investors are also concerned that demand and growth in China is slowing. The recent report on the stress test for China banks prompted speculation that something may be brewing for this global economic power house. It is commonly believed that if China slows, the world slows too.
It is interesting to note how the EUR/USD sliced through 1.32. This suggest that the bearish momentum is strong and the line of 1.3090 may give way if adverse events happen.
Trade safely in view of the Fed announcement later and data releases such as the US Trade Balance tomorrow.
Had a long day at work full of the usual craziness and nonsense… WHATS NEW? ( Guess you folks know the moment you see my crankiness at the start of the article lol )
Saw a few message over at the community of trade positions getting wiped out. Koalas, do trade safely ok? See you soon.
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