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Good day to all.
The committed koala is reporting in ! In a foreign country reporting live.
The EUR/USD dropped like an EXTRA weight anchor!
Our market sentiment clue the S&P 500 dropped towards the major support of 1100.
Oil is around $73+. Nothing new as usual.
Gold has dropped back to around $1110+ a recent support line. As the market speaks of risk aversion, i believe this drop may be due to the sudden strengthening of the US Dollar, rather than an immediate sell off of gold.
So what do we have on the menu for risk aversion today?
1) Standard & Poor’s decision yesterday to reduce Greece’s credit rating for the second time this year probably was quite a shock to markets. We are talking about a country’s rating !
2) In the US, Initial Jobless Claims rose by 7000 too.
As the year draws closer to an end, one upcoming possibility may be the closing of long positions held since March 09. When these positions are closed, the gap may add to further short pressure on the EUR/USD,
Bullish relief may bring us for a test of 1.4000.
Bearish pressure may see the EUR/USD knocking at 1.4300.
Monitor the Greece problems closely and watch out for new developments from the usual areas.
Ah, the 1st day of my much awaited trip. Well i simply love the cold weather. I am on a hilltop and nothing beats drinking hot coffee with the coolness of 15 degrees.
Hope your xmas holidays are coming up great ! Trade safe. Markets are on the move. Remember. With excessive risk, just one wrong trade may put you out of the forex club.
Read more Forex Articles and Views by The Koala at www.thegeekknows.com