Simultaneous Release at

TheGeekKnows.com – Learn Forex Trading and view EUR/USD Reviews.

Good day forex traders !

I hope your Monday was a good one.

The sentiments in Europe improved yesterday probably due to the better than expected industrial production. The lower valued Euro is having a positive effect on exports. The MSCI World, a gauge of the world equities performance, rose above the highest closing level since May 19. This indicated that the global sentiment probably improved.

Having said so, we noted on the importance of remembering that the crisis still remains. A report indicated that investors interest in the bonds of European banks dropped due to concerns that banks may be excessively exposed to the debts of troubled European countries. With choked funding, banks may suffer from a credit crunch.

Looking at the EUR/USD, we hit 1.2330. A perfect play of support and resistance lines. I LOVE IT WHEN MY CHART WORKS.

The S&P 500 is currently at 1103. Sentiments seem to be holding up for now.

Oil is holding ar $76 for now too.

Gold displays an interesting indication. It is currently up at $1230. This may be due to the weaker US Dollar or an increase in demand. When there is an exceptional interest in gold, it may be risk aversion at work.

***

Today saw Moody cutting Greece’s credit rating to junk. While this is negative, the EUR/USD only took a momentary hit. This suggests that the market may very well be over and done with for Greece. ( Of course unless something exceptional happens and puts the Euro Zone at risk ) Spain is the current star of the ” who is the next budget deficit crisis country ” show and massive debt redemption is looming.

The strong economic data flowing from the US helped kept the sentiments positive. The US TIC Long-Term Purchases turned out higher than expected, indicating increased foreign demand for US investments. On a wider note, this suggests that the global economy is moving. Slowly but surely.

From a technical point of view, 1.2330 is a line tested strongly before. A clear breach from here may open up 1.24/1.2440. With a failure to break the resistance, we may see the currency pair head back towards 1.22.

Tomorrow brings us a number of data including the Euro CPI and US building permits. Housing is usually an economic stimulant and hence investors will be keen on the outlook.

***

I had one of the most craziest day at work today. From noon to evening, i was so busy that i barely had time to go to the toilet. Therefore trading was just a dream! Man, my quarrel with Ms Sleep had been on for two weeks now. We spent about 6 or less hours together a day and the signs are showing on my face. COME ON give me 48 hours A day!

Trade safely.

Related Forex Articles from the Koala Forex Training College.

  • What is risk aversion in forex?
  • Gold is an investment of choice during uncertainty.
  • Gold and the US Dollar.
  • Housing is a stimulant for the economy.
  • Read more Forex Articles and Views by The Koala at

    TheGeekKnows.com – Learn Forex Trading and view EUR/USD Reviews.

    ©2010 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

    .