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Good day forex trading koalas.
With 1 more day to go before Friday, i am already looking forward to the weekend. Yay!
Yesterday saw speculations regarding a credit line for Spain by the IMF, EU and US Treasury. However it was “firmly” denied by the European Union. Nonetheless, Spain has the third largest deficit in the Euro Zone and much work must be done. Spanish general strikes are looming and it will be a challenge. New building permits in the US were disappointing with the expiration of a tax credit by the US government. It was also reported that Russia is considering to expand it’s foreign reserves with Canadian and Australia dollars. We need to look out for the effects on the currency being sold should it happen.
The EUR/USD continues on it’s bullish run and looks set to test 1.24 next.
S&P 500 hovers around 1110 for now.
Oil is edging up at around $77. As oil is often a clue to the global economy’s health, a good indication here suggests good outlook.
Gold is up again and is now at around $1249. While this may be due to the weaker US dollar, there may be some demand due to risk aversion.
The Bank of Spain has decided to release the results of stress tests on banks. While this is welcomed by many as a step towards transparency, many investors also felt apprehensive as this may be opening a can of worms. Further concerns include the misinterpretation of the data by the market or the lack of a fall back mechanism in place. While risk aversion was felt, the bond sales today by Spain attracted good take up, fueling positivity.
The sentiments rain came pouring over in the US today. A manufacturing index came out much worst than expected and the unemployment claims increased. The recovery remains fragile and the market will definitely be concerned with any negative data.
While tomorrow is rather light in the economic release department, the German PPI or Producer Price Index is due to be released. Being the largest economy in the Euro Zone, this will probably have some weight on the currency pair.
From a technical point of view, the current bullish momentum remains intact as the bullish trendline in H4 remains. Resistances should appear at 1.24 and 1.244. Should the Spanish situation deteriorate or if any adverse events happen, we may see supports being tested at 1.2330/1.2300/1.2200.
Today i want to remind everyone to appreciate your family. I saw a community ad and i agreed with it. Basically the ad was about how troublesome this person’s elderly mum was and his child did not comprehend why was he so good towards her. Flashback to many years ago and it showed a young mum carrying this child on her back rushing to the hospital because the child was sick.
Yes. Appreciate your family and of course trade safely.
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