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Good day forex traders.
It is mid week, Time for a performance check. Is everyone green so far?
Remember the objective is to finish green every week. No matter how big or small, simply finish green
Yesterday we noted that the Euro Zone’s unemployment rate had risen to 10.1%. Employment is one of the main indicators of the economy and hence is very much regarded by investors. Concerns regarding the further spread of the budget deficit crisis probably kept the sentiment towards the Euro at a great low. On the other hand, the Bank of Canada raised its key interest rate becoming the first G7 country to do so.
The EUR/USD failed it’s test of the H4 trendline yesterday and continues sliding. I LOVE IT WHEN MY TRENDLINE WORKS!
The equity index S&P 500 continues to display signs of rocky foundations.
Oil remains around $74+.
Gold is slightly lower at $1218+.
Continuing on the ratings cut saga, Spain is under the limelight again. For the third day, credit-default swaps on European sovereign debt rose. There are speculations that Spain will struggle with $38 billion of debt that is due for redemption next month. This continues to fuel the concerns and risk aversion with regards to the Euro Zone deficit crisis worsening. As the redemption dateline draws nearer, we may see more adverse reactions. Tighten your seat-belts.
Over in the US, pending home sales came out much better than expected! However where is the party and celebration? The great data is due to folks taking advantage of the last month of the tax credit. Should the home data continue to be good AFTER the tax credit, only then can we celebrate the economic recovery.
Tomorrow brings us many data including Euro Zone Retail Sales, US ADP Non-Farm Employment Change, Unemployment claims and more. We may see a rocky day. Therefore it is important to plan your trades well.
While the H4 trendline remains, i will not be placing too much hope on a bullish trend. Do take special care though. If the trendline continues to squeeze the currency pair without the pair making lower lows, there may be a risk of a breakout. Upperlimits for now are 1.2300/330. While the bottom limits are probably 1.2135/100.
I got a presentation to make tomorrow at my crazy work. Therefore i need to meet Ms Sleep early today. Hope our date goes well.
See u tomorrow and trade safely.
P/S US NON-FARM PAYROLL IS THIS FRIDAY !!! MARGIN CALL FRIDAY !!
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