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Good day forex trading koalas!
In the previous review, we noted a strong bullish momentum. The EUR/USD tested 1.3285+ and looked posed for more. This was probably caused by positive sentiments. China despite a high inflation rate, held off interest rate hikes for now. Investors were relieved that growth will probably continue in Asia and the world.
Looking at the EURUSD chart above, we can see a test of the 1.3455+ region. These red support and resistance lines were found by me painstakingly after long hours of scanning the charts and I LOVE IT WHEN IT WORKS !
The positivity from yesterday drove the currency pair up and now a minor consolidation seems to be taking place. Although the German ZEW Economic Sentiment came out better than expected, the US economic data was no push over either! US Retail Sales and Producer Price Index both came out better than expected and that probably increased demand for the US Dollar.
I have not mentioned about oil for sometime now and it has indeed come a long way from the 70s. As oil can be a clue to the global economy’s health, it’s elevated prices may indicate a flourishing recovery.
In another report, it was mentioned that the ECB may request for a capital increase from it’s members to protect it from losses incurred due to it’s bond purchase policy. This may cause concern among investors on the viability of the Euro Zone. Furthermore Standard & Poor’s cut Belgium’s credit rating from stable to negative today.
Besides the important economic data due tomorrow, the US Federal Fund Rate is coming up later. Be careful of unexpected spikes.
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