Simultaneous Release at

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

Ok forex trading koalas.

I am not my usual self today and i am trying hard to control my nagging urges.

Yes, it was a crazy work day.

In the previous review, we noted more negative data from the US and i warned that the media may be refocusing their bashing back to the US. Furthermore, while China became the second largest economy in the world, her intent to reduce her US Dollar reserves spells trouble for the currency.

Looking at the EUR/USD chart above, we can see the currency pair up against the resistance line of 1.288. You know it, I know it, WE KNOW IT.

I LOVE IT WHEN MY CHARTS WORK.

While the S&P 500 climbs slightly, the outlook remains uncertain.

Oil remains around $75. As we have been hovering around this region for a long time without clear ascension, the state of the global economy is probably similar. Ranging up and down.

Gold remains high at $1220+, probably a safe haven for investors who are risk adverse. The current conditions of the market suggests that risk aversion remains elevated.

***

The German ZEW Economic Sentiment came out worst than expected today. On the contrary, the US printed good statistics such as the Industrial Production. Having said so, the EUR/USD did not dip in favor of the US Dollar. This suggests that investors are probably still adverse against the US Dollar.

A report today mentioned that China reduced it’s holdings of long term US treasuries by a record amount. It fell by more than $20 billion in June. As the US increases her debts, the pull for investors to commit lessens. Who wants to board a “sinking” ship after all?

With the second largest economy in the world taking such a stance towards the US, it will not be difficult to guess the impact to the sentiments towards the US.

Tomorrow is a day light on news for both sides and hence we may see ranging action if nothing adverse crops up.

Trade Safely.

***

Something interesting came to my mind today. If you are the top person at the central bank for one day, what will you do to make a difference?

Flood the market with money or drain it dry? Lower the interest rates or bring it high?

Interesting eh?

Related Forex Articles from the Koala Forex Training College.

  • Oil may be a clue to the global economy’s health
  • How to identify potential support and resistance lines the koala way
  • Read more Forex Articles and Views by The Koala at

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

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