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Good day forex traders.
Today is Cash Your Pips For Beer Day, also known as Keep Your Profits and Stop Your Losses Day!
Yesterday brought us worst than expected US unemployment claims and it probably affected the sentiments of investors. A leading indicator also indicated that the recovery may cool in the second half of the year. There were concerns with regard to the Euro Zone crisis that the US might be implicated. We must reminder that the US faces a deficit of her own and the unemployment crisis is still underway.
A quick look at the currency pair indicated a reversal of sorts for the EUR/USD after hitting a low of 1.2135.
The US equities index S&P500 is currently trading at 1085+. Recent performance of this index is rather shaky. This suggests a rocky sentiment foundation.
Having tested $70, Oil climbs to $72+ for now.
Gold holds steady at around $1180+. This suggests demand due to probable uncertainty.
The German’s share of the aid program for the Euro Zone was approved by her lawmakers today, easing concerns of investors on a spiraling Euro Crisis. This market welcomed this development as this moves the plans of the aid program towards reality. A meeting of European Union will be held today too to discuss changes to economic polices and controls. This may further strengthen sentiments as investors probably see this as an concrete action to prevent further economic problems in the Euro Zone.
From a technical point of view, there were reports stating that the current correction may be oversold. If no further adverse developments crop up to cause risk aversion, with the increasing shift of sentiments, this MAY ( and a big may it is ) be the turning point.
Bullish pressure may see 1.2600/45.
Bearish comeback may see 1.2500/440.
Stay tune for the EUR/USD weekly review over the weekend.
I think i am falling sick again. This few days of site improvement and facebook engagement took much time away from Ms Sleep.
I hope she does not file for a divorce !
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