EUR/USD Daily Review 21 Jan 10

Good day to all.

Tomorrow is FRIDAYYYYYYYYYYY!

The day before the next two days we call the weekend. I am definitely going to train up my L4D2!

Like a roller coaster, the EUR/USD rushes on and is fast approaching the major support of 1.4000.

In the meanwhile, the S&P 500 bashes towards the support of 1120 too.

Oil tries hard to resist and is currently at $75+.

Gold the biggest winner turned loser, gives up and is currently at $1094+.

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With the major markets and indexes red, we can probably conclude that a correction is taking place. Now do not be surprised. You don’t think that prices will go up sky high ever and ever ya? Nah. The markets never move in a straight line.

I had a reader writing to me that he got margin called and i feel sad. As you know, i feel that money is never easy to come by and hence we need to make the best out of our investments. Folks, do remember that we always must trade the chart and not go against momentum.

One of the main reason for the current bearish gala is probably what you have been hearing about for sometime now. China’s increasingly active stance on the need to curb speculative growth and bubbles. China is now the world’s second largest economy and investors are probably counting on China to stimulate a global growth. With the party cut short, investors are apprehensive and hence risk aversion strikes.

Add on the series of poor releases streaming out of the EURO zone and US, tada!!! a perfect cocktail of correction.

If the bulls attempt to stop this onslaught, we may see 1.4080/1.4150.

If the bears show no mercy and marches on, 1.4000 and after which 1.3940 may be tested.

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I love coffee and i can drink up to 5 cups a day! The best thing is after which, i can still fall asleep easy. LOL this is the koala in me. Tell me about the koala in you ok?

Trade safely!

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