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Good day forex trading koalas!
With the end of the trading week near, how is your trading so far?
Hope everything is green for you.
In our previous review, we noted that the EUR/USD was testing the resistance of 1.288+, a line often highlighted in my reviews. As the next day was light on data, i mentioned that we might be seeing ranging action. I also mentioned that the sentiment towards the US continues to turn negative.
Looking at the EUR/USD chart above, we are indeed ranging. Numerous attempts have been taken to push above the 1.288 line but all had failed. Implementing these lines are one of the best things i have done for my forex trading. Many times these lines warned me of upcoming supports or resistances!
With the US Philly Fed Manufacturing Index and Unemployment claims performing worst than expected, the S&P 500 is taking a hit.
Oil remains depressed due to the poor global sentiments.
Gold remains at a height of $1230+, shouting out loud that it remains an investment of choice when it comes to stormy economic weather.
Today i will like to share a report about the US budget deficit. It was reported that the US Congressional Budget Office revised the budget deficit for the fiscal year 2011 upwards! The previous estimate in March was $996 billion but the latest estimate is $1.066 trillion.
What does this mean?
This means that the US will be facing more and more problems with regards to it’s attractiveness to investors and hence face tougher challenges to finance it’s debts. It is a vicious cycle! The US needs to do something now to cut it’s deficit. In fact some investors believe that the US had already passed the point of no return, which is eventual default!
Tomorrow will be a day light on economic releases again and hence watch out for ranging conditions. Do be careful for breakouts though if adverse developments happen.
With the weekend coming soon, have you started to plan for me? To be honest, i have planned beyond it. This means i am already dreading the upcoming Monday !!
LOL. Call me Negative Koala )
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