Simultaneous Release at
Good day EUR/USD traders!
Second day of the week and i hope you are already green.
Yesterday i mentioned that despite troubling news from the Euro Zone, the Euro did not suffer a major sell off. While we might be inclined to think that there was no risk aversion, we must also consider the fact that the market may be adverse towards the US instead.
Looking at the EUR/USD chart above, we see that the trading is bounded by 1.2880 to 1.3 for now. I LOVE IT WHEN MY CHART WORKS. Having said so, do remember that support and resistance lines are never a single pip.
The S&P 500 has fallen for now at 1064+.
Oil is pretty much unchanged for now and this may indicate that the global economy is stalling as oil can be a clue to the global economy’s health at times.
Gold is rising due to possible risk aversion. It is now trading around $1191+.
Today is not a day for risk seekers.
Housing starts in the US fell more than expected. It hit the lowest level since October and is probably due to the end of the housing tax credits. As housing is a good stimulant for the economy, a lower level of such activities may bring about a cycle of economic depression.
Goldman Sachs, IBM etc posted lower than expected revenues and this suggests to investors that the economic rebound is slowing down and conditions may be turning difficult. In particular, Goldman Sachs said that second-quarter profit dropped a shocking 82 percent.
Last but not least, as the Euro Zone bank stress test results are due this Friday, investors are getting apprehensive. Speculative lists of potential failure banks are reported to be emerging.
Tomorrow is apparently light on data releases but nonetheless we must always be prepared. Sentiments may get rocky as Friday draws nearer.
From a technical point of view, we may continue to trade within this range with occasional intrusions beyond the range. Watch out for extreme events bringing a shift in price expectations.
Are you looking forward to the weekend already? LOL Hope you have a great day ahead while i try to resist the ZzzzZ monster
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