Hi Koalas !
The nearing of Xmas is just making me cranky ! I love a white Christmas with white koalas !
What do we have on the menu today?
The free fall of the EUR/USD seems to have stopped for now. 1.4200 proved too strong a support for now.
S&P 500 in the meanwhile continues to push the 1120 technical resistance. Sentiments were high on the apparent signs of economic recovery.
Oil climbs to $74+. This movement is probably insignificant as compared to the other market clues.
Gold garnered some support and is now trading at $1090+.
Ok. We all know this section is usually reserved for me to do the finger pointing shameless blaming game. So what stopped our US Dollar Bull Run Party for now?
The US New Home Sales came in lower than expected ! In fact it is even lower than the previous release. I mentioned that home sales is crucial to an economy and this may have an impact on the various markets. Currencies, a very volatile market had already felt it as the EUR/USD halt it’s drop and climbs back above 1.4300. Gold received some demand as investors think twice about their risk exposure and the S&P 500 fell below 1120.
If the US New Home Sales disappointment spreads, the bulls may proceed to test 1.4362 and 1.4400.
Should the bearish momentum continues, a test of 1.4260 and 1.4200 may be attempted again.
Watch if the S&P 500 falls too and take precautions accordingly.
As we have certain EURO banks closed on Dec 24 for the holidays, volume may be light and hence spikes may occur. Important news are still to be expected from the US such as unemployment claims and hence as always, we must not let our guard down.
Have you ever stared into the pc until your eyes hurts and you can’t see sh** on your screen? This often happens to me when i am researching or writing articles for the koalas. Hmmm. Is there a solution to this?
Trade Safe my joyful koalas!
Read more Forex Articles and Views by The Koala at www.thegeekknows.com