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Good day forex trading koalas.
In the previous review we noted that investors are probably less concern about China’s speculated moves to further curb speculative growth after recent comments from the Chinese Central Bank. Many investors see China as a major player in the global economic recovery and hence any slow down in it’s economic may potentially stall recovery.
Looking at the EUR/USD chart above, we see a strong support at 1.32. Despite repeated testing, the line holds for now as a stronger demand for the US Dollar is probably needed to push the EURUSD below 1.32.
As the Euro Zone starts a two day summit on the escalating debt crisis, some risk aversion is probably in the markets. Investors are probably apprehensive about the developments in the Euro Zone. A group of nations with different economic characteristics, a complete resolve and agreement on issues do not come easy.
Economic data from the US is mixed too with the Building Permits coming in worst than expected and the Unemployment Claims slightly better than expected.
As the currency pair hovers above the 1.32 support, watch out for false signals. Should this support fail, we may see further bearish momentum up to 1.3.
The Euro Zone summit continues tomorrow and important economic data such as the German Ifo Business Climate is due too. Plan your trades well.
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