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Good day Koalas!
Welcome to the end of the week.
Presenting a gift to bearish fans, the EUR/USD tested 1.3550 as shown on my chart and eased right above 1.3600 again.
The S&P 500 continues to range between 1060 to 1080. The market is hesitant about the current developments.
Oil drops slightly and is now valued at $72+
Gold is pretty much unaffected as demand may be increasing due to gold’s role in being a safe asset during times of uncertainty. It currently values at $1087+.
While the possibility of a Euro zone assistance plan for Greece boosted sentiment for a while, the lack of specifics overwhelmed the positivity and negative sentiment is increasing. Investors are worried on both sides of the fence. Should the Greek problem escalates, the fall out may spread. If the Greek problem do get solved, the extra resources taken to accomplish this may hinder recovery efforts.
As i mentioned previously, the solution goes beyond a mere “fix.”
The poor German Preliminary GDP added to the “fires” of risk aversion. Investors confronted with poor Euro Zone data and a major sovereign issue probably bailed out, seeking the safety of less risky assets.
Remember i mentioned that China being the second largest economy in the world, will probably play an important role in the global recovery? Investors seem to have the same thoughts as mine. China took measures to further reduce speculative growth and bubbles today and this prompted worries that the recovery process may slow down. Investors are probably looking towards China to lead the world economy out of the crisis.
Bullish momentum may bring us towards 1.3680.
A return of the bears may test 1.3600/550 again.
Keep a look out for the EUR/USD Weekly Review over the weekends for a wider outlook.
LOL i stared at the monitor for so long today that i am seeing stars! Even the words on my screen are a little blurry. HOWEVER, this will not stop me from practicing Left 4 Dead 2 Yes. After failing miserably to torment players in BattleForge, i have moved on to “greener” pastures.
Trade safely folks. Remember, today is “cash the pips for the beer” day. Stay green
Read more Forex Articles and Views by The Koala at www.thegeekknows.com