Simultaneous Release at www.thegeekknows.com
I know you hate it. But are you ready?
I LOVE IT WHEN MY CHART WORKS !
The EUR/USD received a major blow today when the German ZEW Economic Sentiment came out worst than expected.
All of this has all happened before, and it will all happen again. ( My favorite phrase from Battlestar Galactica )
I nagged, warned, spoke, grumbled and just about anything about spikes from unexpected results and here comes the madness. The pair dropped to touch 1.4260 right on the dot, giving me the opportunity to shamelessly boast!
The S&P 500 fared better though, currently green for the day. Looking at the chart, what do we see? The price goes up and down, up and down. YES. Hesitation.
After the bullish rally that brought us to the current level, the market seems to feel that the level now is just about that. Unsure about further bullish ascend and careful about a bearish drop. If the correlation of the equities and the US Dollar stays true, watch out for a similar hesitation for the currency pair.
Oil seems to be affected by the stronger US Dollar and is currently down to $76+.
Gold surprisingly holds steady at around $1132+. This may indicate demand and perhaps suggests that some risk aversion is taking place in the market. Gold is known to be a timeless currency, even when times are bad!
With the bankruptcy of JAL and the potential potholes it brings, the market may be in a heightened state. The better than expected US TIC Long-Term Purchases probably added to the strength of the US Dollar too. Tomorrow brings us more important releases such as the US Building Permits and hence do fasten your seat belts.
Bullish reinforcement may attempt to push the pair up to 1.4325/62.
A bearish assault may have us testing 1.4260/00.
A few koalas wrote in to give me suggestions for the blog and i thank you for it. While i do not have the means to implement every suggestion, rest assure that my first priority here is always you the koalas. Otherwise why will i be concerned about your feedback? Nothing comes close to you
Trade safely please.
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