EUR/USD Daily Review 16 Jul 10

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Good day forex trading koalas!

Apologies for the no review yesterday. I am out of the country and my internet connection is not stable

TODAY IS CASH YOUR PIPS FOR BEER DAY !!!! ( ok this is not a call for you to go drinking. The usual laws, religion, moral faith, personal values , etc applies ! this is rather a point made to indicate that it is the end of the trading week and everyone should end it happy in green profit )

Looking at the EUR/USD chart above, the bullish momentum is strong.

The S&P 500 has not started yet and as of close, it is just under 1100.

Oil is hovering around $75.

Gold is currently at $1190+. With the recent weakness of the US dollar, we may see pressure on the gold price.

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On Thursday, the US economy saw red with a number of economic data clocking in poor. The PPI fell together with the Philly Fed Manufacturing Index which turned out lower than expected. This may indicate that the apparent strong recovery of the American economy may be cooling down.

Although the US unemployment claims turned out better than expected, we must remember that the overall employment market remains weak and such short term figures may be mere “noise” in the data. Hence it did little to prevent the sell off of the US dollar.

Just moments ago, the US TIC Long-Term Purchases printed weaker than expected data too. With it, it suggests that foreign investments are lesser than expected. This leads to a weaker demand for the domestic currency ( US Dollar ) in the bigger picture.

The US Prelim UoM Consumer Sentiment is due to be released later and hence do be careful. A weaker data again may bring realization to more investors than the US economy may not be as robust as it seems to be. ( Something i warn you koalas many times about ! )

From a technical point of view, 1..3000 may be a strong resistance. However today is Friday and hence investors closing positions for the week may affect price movements.

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Ok! My week long trip is ending tomorrow. Next week will be back to my usual life. CRAAZY WORK TIME lol

How i wish i can do simple farming for a living ! ( like farmville in facebook hahaha )

trade safely!

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